Florida CEO gets 2½ years, $2.6M penalty in Calif.

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Updated: 12/16/2013 7:35 pm

SAN DIEGO (AP) — Federal prosecutors in San Diego say a Florida software executive has been sentenced to 2½ years in prison and ordered to pay $2.6 million in restitution after pleading guilty to stock fraud.

U.S. Attorney Laura Duffy said in a statement that iTrackr Systems CEO John G. Rizzo of Boca Raton received the sentence Monday.

The 51-year-old Rizzo, whose company developed software to track inventories, pleaded guilty in August to using offshore boiler rooms to solicit investments for the company's penny stock without disclosing that only 20 percent of the investments went to the companies and the rest was the boiler room's commission.

According to the plea agreement, Rizzo and sold millions of shares of stock through a shell company in the British Virgin Islands to avoid federal securities scrutiny.

 

©2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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