- Jason Galanis admits to scamming investors in Gerova Financial
- Father John pleaded guilty to similar charges on Wednesday
A California man admitted scamming investors of Gerova Financial Group Ltd. as part of a $20 million pump-and-dump scheme, a day after his father pleaded guilty to similar charges in what prosecutors said was just the latest episode in a history of fraud.
Jason Galanis, 46, of Los Angeles, pleaded guilty Thursday in New York to securities fraud and three other charges in exchange for a sentence of 10 years to 12 1/2 years in prison and a fine of $30,000 to $5 million. He also agreed to forfeit almost $38 million. Sentencing is set for Dec. 9.
Galanis’s 73-year-old father, John, admitted to similar counts in the same courtroom a day earlier in exchange for a sentence of as much as 10 years.
The two men, along with two of John Galanis’s other sons and two other men, were accused of obtaining secret control over millions of shares of Bermuda-based Gerova and bribing investment advisers to buy the stock for client accounts, allowing them to reap millions in illegal profits.
Jason and John Galanis face additional charges in an unrelated case that they stole the proceeds of a $68 million bond issue in the name of a South Dakota American Indian tribe and used them to pay legal bills and taxes, buy luxury goods and make home improvements.