A US fraudster has been fined $1.7 million for selling shares in
a company he called Web Hosting Headquarters Inc. which made its
money simply by selling shares – and distributing the funds to the
directors, according to a report by the New York Times.
The Miami court said the penalty will be reduced to slightly
less than $1 million if Kenneth Grossfeld pays the fine within six
months and submits “honest” financial details. He apparently ran
the scam with four other individuals.
The bogus company raised $2.5 million by cold-calling
individuals. Grossfeld of Miami Beach has previously been fined in
three similar cases.
