Boston Investor charged with fraud for stock `free-rides’

A Boston investor was chargedwith 18 fraud counts for “free-riding” stocks, in which he did
not pay for the stocks he purchased and forced the brokerage
houses to burden all the investment risks.

Edward Voccola, 48, wrote more than $4.9 million in bad
checks to pay for his investments, according to the U.S.
attorney’s office in Boston. If the stocks went up, under his
scheme, he would profit, and pay for the original investment out
of the gains.

“If the stock price declines, the investor has a `free ride’
and walks away, leaving the broker to absorb the loss,”
prosecutors said in a statement.

Voccola, who had 13 accounts at 11 different brokerage
houses, left the firms with more than $190,000 in losses. He was
charged with counts of securities fraud, mail fraud, wire fraud,
and the use of a false social security number.

- Advertisement -

Voccola’s phone number is unlisted and he could not be
reached for comment.

If convicted, Voccola faces up to five years in prison.

No posts to display