Florida CEO Pleads Guilty In $3M Fraud Scheme

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Florida CEO Pleads Guilty In $3M Fraud Scheme

Cecil Franklin Speight, sole owner and CEO of International Stock Transfer of Palm Beach, Florida pleaded guilty last month to conspiracy to commit mail fraud and securities fraud for operating a scheme in which he conned investors out of $3 million. According to the SEC, Speight utilized “aggressive boiler room tactics” and faux investment firms that issued fake securities that were worthless.

“Rather than transferring capital to issuers, the defendant used the investors’ funds as his own, including financing his lifestyle in Florida. His victims, from the Eastern District of New York and around the world, were conned into buying bogus securities that were not worth the paper they were printed on. Now, he will be held to account for his crimes,” stated United States Attorney Lynch.

Speight allegedly stole more than $3.3 million from investors and used the money to pay for his personal expenses, such as purchases made at Mercedes-Benz, Nordstrom, and Groupon. He is looking at a sentence of up to five years in prison, more than $3.3 million in restitution, and a fine of at least equal and at most double what the investors lost.

Speight allegedly used cold callers and other means to persuade people into investing their money in high-yield securities. He then promised investors a high rate of return if they invested in securities that were supposedly associated with International Stock Transfer. As soon as the investors wired money to an escrow account, Speight took the money for this own personal use, withdrawing over $350,000 of investor fund in cash.

If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies.

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