Lawyer to Admit Hiding Knowledge of Stock Scam
New York Law Journal
by Jordan Weissman

Federal prosecutors filed a plea agreement Wednesday with a New York-based businessman and lawyer charged with lying to federal investigators about his knowledge of a fraudulent stock sale.
Robert S. Brown agreed to plead guilty to obstruction of justice for hiding what he knew about a “pump and dump” scheme involving an unnamed investment firm in Newport Beach, Calif. According to documents filed at the U.S. District Court for the District of Columbia in United States v. Brown, 09-cr-00267, Mr. Brown also helped an executive from the firm, as well as the chief executive officer and a member of the board of directors of a Chinese company, fraudulently transfer more than $25 million through a series of shell companies into accounts they controlled.
According to a criminal information filed last month in the case, Mr. Brown’s activities took place roughly between January 2004 and January 2008, while he was a name partner with New York’s Reitler Brown & Rosenblatt, now Reitler Kailas & Rosenblatt.
“This matter relates to Bob’s personal activities and does not involve any legal services performed by any member or employee of our firm, ” name partner Scott Rosenblatt said in an interview.
Mr. Brown left the firm to join New World Merchant Partners in July 2009.
Mr. Brown’s lawyer, Arthur Jakoby, a partner with New York-based Herrick, Feinstein, said in a written statement last month that his client “accepts full responsibility for what he has done” and “looks forward to resolving this matter.”
Under federal sentencing guidelines, Mr. Brown could face 10 to 16 months in prison and up to a $30, 000 fine. He has agreed to forfeit $275, 000 in proceeds from his illegal activities.