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Case Number: 19-CR-607
Judge: Pamela K. Chen
Court: United States District Court for the Eastern District of New York (Kings County)
Plaintiff's Attorney: Mark Bini and Hiral Mehta
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Description: Brooklyn, NY - The United States of America charged Jeffrey Auerbach with conspiracy to commit securities fraud.
Earlier today, in federal court in Brooklyn, Jeffrey Auerbach, a former registered representative for various broker-dealers, pled guilty to conspiracy to commit securities fraud for his role in a scheme to take kickbacks from the former Chief Executive Officer (CEO) of NXT-ID, a publicly listed company on NASDAQ, in exchange for promoting NXT-ID stock to investors and potential investors. Today’s plea proceeding took place before United States District Judge Pamela K. Chen. When sentenced, Auerbach faces up to five years in prison, as well as forfeiture and a fine of up to $250,000.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Auerbach exploited his position as a former registered representative for broker-dealers to enrich himself to the detriment of investors,” stated United States Attorney Donoghue. “We will continue to investigate and prosecute stock promoters, brokers and others in the securities industry who exploit the trust of investors and distort the public markets.” Mr. Donoghue expressed his appreciation to the United States Securities and Exchange Commission for its significant cooperation and assistance.
According to court filings and facts presented during the plea proceeding, between July 2014 and September 2015, Auerbach conspired with others to defraud investors and potential investors in NXT-ID, a company that purported to provide a comprehensive platform of technology products and services that enable the Internet of Things (“IoT”). As part of this scheme, Auerbach allegedly accepted secret payments from the CEO of NXT-ID in exchange for promoting NXT-ID stock to investors, and making payments to a broker to purchase shares of NXT-ID stock in the accounts of the broker’s clients.
The government’s case is being handled by the Office’s Business & Securities Fraud Section.
Title 18 United States Code Sections 371 and 3551 et seq - CONSPIRACY TO COMMIT SECURITIES FRAUD
Outcome: 01/10/2020 23 INFORMATION as to Jeffrey Auerbach, count 1. (Abdallah, Fida) (Entered: 01/10/2020)
01/10/2020 24 WAIVER OF INDICTMENT by Jeffrey Auerbach. Signed by Judge Pamela K. Chen on 1/10/2020. (Abdallah, Fida) (Entered: 01/10/2020)
01/10/2020 Minute Entry for proceedings held before Judge Pamela K. Chen: Arraignment/Plea Agreement Hearing as to Jeffrey Auerbach held on 1/10/2020. Appearances by AUSA Hiral Mehta and Roland Riopelle, retained, for defendant (on bond). Case called. Defendant sworn, arraigned, informed of rights, and waives trial before District Court. Waiver of Indictment executed for defendant. Information filed. Defendant enters a guilty plea to the sole count of the Information. Court accepts guilty plea. Sentencing scheduled for August 4, 2020, at 10:00 a.m., in Courtroom 4F North. Plea agreement marked as court exhibit 1 and returned to the Government. (Court Reporter Michele Nardone.) (Abdallah, Fida) (Entered: 01/10/2020)