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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16762 / October 12 , 2000

U.S. v. Aron Oleg Bronstein, et al. 00 CR 100 (S.D.N.Y.) (MBM)

ARON BRONSTEIN, TOMER YUZARY, ROMAN SAKHAROVICH (a/k/a ROMAN SAKH), and IOSEPH PAK (a/k/a JOE PAK) PLEAD GUILTY TO CRIMMINAL CHARGES ARISING FROM FRAUDULENT OFFERING OF STOCK OF THE GOLDEN LENDER FINANCIAL GROUP, INC.

On October 3, 2000, two principals of a Manhattan brokerage firm and two of its registered representatives pleaded guilty to criminal charges arising out of a fraudulent offering of the broker-dealer's own stock. The four individuals, Aron Oleg Bronstein, Tomer Matthew Yuzary, Roman Sakarovich, and Iosif Pak, were charged with conspiracy and securities fraud in a fourteen-count indictment issued earlier this year, along with the firm, The Golden Lender Financial Group, Inc., a/k/a J. P. Gibbons & Co., Inc. Each of the individual defendants pleaded guilty to charges that they defrauded investors by persuading them to buy Golden Lender stock through a series of false representations and material omissions. United States District Judge Michael B. Mukasey scheduled sentencing for the four defendants for January 19, 2001.

Previously, the SEC filed a civil complaint in the United States District Court for the Southern District of New York against the same defendants based upon the same underlying conduct. SEC v. Aron O. Bronstein et. Al., 00 Civ. 1179(S.D.N.Y.) (LAK), Litigation Release No. 16441 (February 17, 2000). The SEC's complaint charges that from at least January 1998 through November 1999, the defendants raised at least $5,270,000 in a fraudulent, unregistered offering of Golden Lender stock. Specifically, the complaint alleges that, acting at the direction of Bronstein and Yuzary, Sakh and Pak sold Golden Lender stock to Golden Lender retail customers -- including many elderly and infirm customers of modest means -- using a high pressure sales pitch that included numerous material misrepresentations and omissions. Among other things, the defendants allegedly falsely represented that Golden Lender would soon conduct an initial public offering of its own stock and that investors would reap large profits once the firm went public and failed to disclose Golden Lender's precarious financial condition and the exorbitant payments to Bronstein and Yuzary drawn from investor funds.

http://www.sec.gov/litigation/litreleases/lr16762.htm


Modified:10/16/2000