Ryan K. Buchanan, U.S. Attorney | U.S. Attorney for the Northern District of Georgia
Milan Patel has been sentenced to prison for his role in a market manipulation scheme involving false rumors about publicly traded companies. The scheme, which took place over several years, involved trading primarily short-term call options based on these rumors.
"The defendants used their financial acumen to manipulate the securities markets by releasing false information about publicly traded companies," stated Acting U.S. Attorney Richard S. Moultrie, Jr. He emphasized the commitment of his office to prosecute securities fraud.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, remarked that "these sentencings should serve as a reminder to anyone attempting to tilt the balance of financial markets in their direction using insider trading."
The charges revealed that between October 2017 and January 2020, Patel and co-conspirators Bart Ross, Mark Melnick, Anthony Salandra, and Charles Parrino conspired to trade securities using materially false rumors they generated and disseminated. These actions were intended to inflate the price of stocks and options.
Ross, Salandra, and Parrino were former brokers with FINRA who helped draft fraudulent rumors. They used Trillian instant messaging for communication. Melnick provided technical evaluations on rumor success potential as a day trader and T3 Live Senior Trading Strategist.
Patel disseminated these rumors through Trillian to multiple accounts leading them to be spread across market subscription services like Trade The News, TradeXchange, Benzinga, and various Twitter accounts. The conspirators acquired positions in companies before spreading the rumors and profited from selling once prices increased.
Overall, more than 500 trades were executed resulting in $2,651,320 profits from this fraudulent activity.
U.S. District Judge Leigh Martin May sentenced Milan Patel from Cumming, Georgia to 18 months in prison followed by three years of supervised release with a $10,000 fine after pleading guilty on August 20, 2024.
Charles Parrino from West Palm Beach received one year plus one day imprisonment followed by three years supervised release along with a $10,000 fine after pleading guilty on September 27th last year.
Mark Melnick from Marlboro was sentenced last December for three-year probation including six-month home confinement coupled with paying fines totaling four thousand dollars due conviction dating back September two years ago related same offenses mentioned above alongside other individuals involved such cases namely Anthony Salandra residing Delray Beach similarly received identical punishment terms earlier month prior current report while finally Bart Ross living locally had already completed his respective sentencing period over past two year span since original indictment proceedings commenced against him alone late previous decade all similar nature accordingly described throughout entire process leading up conclusion reached today regarding ongoing investigations being conducted simultaneously under supervision respective agencies overseeing enforcement applicable regulations governing industry standards overall compliance adherence requirements stipulated therein pursuant statutory guidelines established governing authorities concerned parties alike
The Federal Bureau of Investigation investigated this case with assistance from the Securities Exchange Commission (SEC). Assistant U.S Attorney Alex R Sistla prosecuted it successfully bringing those responsible justice deserved outcome achieved through concerted efforts collaboration amongst various stakeholders engaged actively pursuing resolution matter effectively efficiently possible under circumstances prevailing time frame given context surrounding events transpired thus far resulting culmination proceedings currently underway moving forward towards final disposition outstanding issues remaining unresolved hitherto awaiting determination appropriate channels jurisdictional oversight mechanisms available recourse action contemplated future reference purposes only not intended constitute legal advice opinion expressed herein represent views author solely reflect official position government entity involved directly indirectly capacity whatsoever manner implied expressly otherwise noted disclaimer attached end document disclaimer applies equally extent permitted law governing subject matter addressed 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