LOS ANGELES (AP) — Fifteen people have been indicted on charges that they took part in a stock manipulation scheme that defrauded more than 20,000 people out of more than $30 million by investing in companies once touted by Pamela Anderson and Eric Roberts.
Among those charged with conspiracy are a former Los Angeles County deputy district attorney and the head of a public relations firm.
A three-year investigation revealed a pump-and-dump scam, where stocks were heavily promoted, boosting its price and then sold off to reap large profits. One of the stocks was for a company called frogads.com that featured Anderson in an informercial. Another company was touted by Roberts.
Neither Anderson nor Roberts is suspected of any wrongdoing.
If convicted, each of the defendants faces up to 100 years in federal prison.
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