An organizer of a “boiler room” stock scheme that victimized senior citizens has been sentenced to six years in prison, the Securities and Exchange Commission announced Thursday.
Jonathan Fraiman, formerly of Lantana, Fla., and Boston, Mass., also was ordered to pay restitution of $3.8 million for his part in a scheme, which the sentencing judge described as coldhearted.
Fraiman was convicted of mail fraud and conspiracy to commit mail and wire fraud. He was marketing officer and chief compliance officer for a series of entities all of which had the name Envit in them, the SEC says.
More than 150 investors, many of them senior citizens investing their retirement savings, were defrauded in the scheme, which took place between 2008 and 2009, the SEC says. The boiler room operation used false promises and pressurized sales tactics to sell securities over the telephone.