Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Axius CEO Indicted Over Stock-Manipulation Claims

Don't Miss Out —
Follow us on:

July 6 (Bloomberg) -- Axius Inc. Chief Executive Officer Roland Kaufmann was indicted on charges he participated in a scheme to bribe brokers and manipulate the share price of the Dubai-based company.

Kaufmann, 60, was charged in an indictment filed yesterday in federal court in Brooklyn, New York. He was charged with conspiracy to commit securities fraud, wire fraud, money laundering and other crimes. Jean-Pierre Neuhaus, 55, a Swiss financial professional, was also named in the filing.

Kaufmann and Neuhaus are accused in the indictment of trying to artificially inflate the value of Axius stock by enlisting a person who they believed would direct a group of corrupt stockbrokers to buy shares in exchange for kickbacks of as much of 28 percent. That individual was an undercover enforcement agent, prosecutors said.

“Rather than rely on the market to set the true value of Axius stock, the defendants allegedly sought to buy the best price possible through bribery and deception,” U.S. Attorney Loretta Lynch in Brooklyn said in a statement.

No Axius investors were defrauded in the undercover operation, the Justice Department said in the statement.

The U.S. Securities and Exchange Commission filed a related civil enforcement action against both men yesterday, prosecutors said. Both men were charged in a criminal complaint and arrested on March 8, 2012, according to the statement.

Robert Nardoza, a spokesman for Lynch and, Josef Klazen, a lawyer for Kaufmann, didn’t immediately return voice-mail messages after regular business hours yesterday seeking comment on the indictment.

Justin Goodyear, lawyer with the Justice Department’s fraud section and Shannon Jones, an assistant U.S. attorney in Brooklyn, didn’t return voice-mail messages after regular business hours yesterday.

To contact the reporter on this story: Christie Smythe in New York at csmythe1@bloomberg.net

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.