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May 16, 2006 |
STATEN ISLAND MAN ADMITS INVOLVEMENT IN BOGUS STOCK SCAM
Kevin J. OConnor, United States Attorney for the District of Connecticut, announced that DMITRY KUPERMAN, also known as James Kaufman and Jimmy Kaufman, age 32 (DOB 04/10/74), of 55 Comfort Court, Staten Island, New York, pleaded guilty today before United States District Judge Janet C. Hall in Bridgeport to one count of securities fraud and one count of conspiracy to commit mail fraud, securities fraud and money laundering.
According to documents filed with the Court and statements made in court during this morning�s proceedings, KUPERMAN admitted that, beginning in or about January 2001 and continuing until at least March 2004, he participated in a conspiracy to defraud investors, a number of which were from Connecticut, by selling them bogus stock for a company that did not exist.
Specifically, KUPERMAN admitted that he, Igor Malyar, Viktor Novosselov and others falsely represented to victim investors that they worked for a venture capital firm called Blue Square Management, Inc., and that the money the victims had invested would be used to purchase securities in what was described as a private ATM-management company named Cash Money Lending Corp. KUPERMAN and Malyar ran the day-to-day office operations of Blue Square Management, Inc., and Novosselov, using the name David Markowitz, held himself out as president and a principal officer of Blue Square Management, Inc. KUPERMAN today admitted that these representations were not true, and that the stock was fraudulent. After receiving the investors� funds, members of the conspiracy provided investors with bogus statements and falsely indicated that the investments would generate significant earnings. KUPERMAN acknowledged that he and others did not place investors� money into investments as represented, but instead diverted the investors� funds for their own personal use and benefit, and converted a large amount of the funds into cash.
Judge Hall has scheduled sentencing for August 15, 2006, at which time KUPERMAN faces a maximum term of imprisonment of 10 years and a maximum fine of twice the value of the loss to the victims in this matter. Malyar and Novosselov have also pleaded guilty and await sentencing.
This case is being investigated by the Federal Bureau of Investigation and the Social Security Administration Office of Inspector General, Office of Investigations, with the assistance of the Securities and Exchange Commission. The U.S. Postal Inspection Service and U.S. Immigration and Customs Enforcement have also assisted in this matter. The case is being prosecuted by Assistant United States Attorney Michael S. McGarry of the United States Attorney�s Office Securities and Investor Fraud Unit.
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