Lawyer scams millions to buy diamond ring

Lawyer scams millions to buy diamond ring

03 March 2012 By Lawyers Weekly

A lawyer who cheated investors of $100 million to buy his wife a $350,000 diamond ring has been convicted of grand larceny and faces up to 25 years in prison.RollonFriday reports that James W.…

A lawyer who cheated investors of $100 million to buy his wife a $350,000 diamond ring has been convicted of grand larceny and faces up to 25 years in prison.

Advertisement
Advertisement

RollonFriday reports that James W. Margulies made his illicit millions via a securities fraud - a so-called "pump and dump" scheme - which artificially inflated the price of stock in Industrial Enterprises of America Inc. - a company at which he was corporate counsel and briefly CEO.

SPONSORED CONTENT

Margulies is alleged to have used the profits to fund a high roller lifestyle filled with private jets, pricey homes and the $350,000 diamond ring for his wife.

Not so subtly, Margulies spent an estimated $7 million on the high life, including $2 million on real estate alone.

Tens of millions of shares were issued to friends and family and immediately sold to bump up their value before Margulies flogged more shares to investors at the inflated price.

Margulies' fellow executive John D. Mazzuto (who has been told to expect a one to three year jail term for his involvement) testified and cut a deal with prosecutors to reduce his own sentence. He was described by Margulies' lawyer as "one of the grand scamsters of our generation."

Margulies was convicted on 30 counts of grand larceny in the first degree, and will be sentenced on 9 August.

Lawyer scams millions to buy diamond ring
Intro image
lawyersweekly logo
The Women in Law Awards is the benchmark for excellence, recognising the empowering women influencing the Australian legal profession, celebrating the female leaders, role models and future champions of the industry. Register for the waitlist today for the opportunity to attend this remarkable awards ceremony and network with top legal professionals and fellow peers.
Visit womeninlaw.com.au