Former Chief Executive Officer of Friedman’s Inc. and Crescent Jewelers Sentenced to 12 Years’ Imprisonment for Securities Fraud, Mail Fraud, and Conspiracy
Bradley Stinn, the former Chief Executive Officer of Friedman’s Inc. and its affiliate, Crescent Jewelers, was sentenced today to 12 years’ imprisonment for securities fraud, mail fraud, and conspiracy. On March 24, 2008, following a six-week trial, a federal jury in Brooklyn convicted Stinn on all counts in the indictment and returned a forfeiture verdict against him in the amount of $1,019,000. The trial and sentencing proceeding were held before Senior United States District Judge Nina Gershon.
The sentence was announced by Benton J. Campbell, United States Attorney for the Eastern District of New York.
During the period of the conspiracy, Friedman’s was a national jewelry chain whose shares were traded on the New York Stock Exchange. The evidence at trial established that Stinn led a multi-year securities fraud scheme that inflated Friedman’s reported financial performance and hid from the market the serious problems the company had collecting money owed for hundreds of millions of dollars of jewelry that it had sold on credit. As part of the scheme, Stinn and his co-conspirators repeatedly lied to shareholders and the investing public about Friedman’s financial performance, made false and fraudulent representations to Friedman’s auditors, and manipulated the company’s accounting in order to prevent auditors from discovering the falsity of Friedman’s financial statements. As found by the court at sentencing, Stinn’s fraud scheme resulted in Friedman’s shareholders and other victims of the scheme losing more than $20 million.
Several months after the announcement of the government’s investigation in November 2003, Friedman’s stock was de-listed from the New York Stock Exchange. Friedman’s ultimately filed for bankruptcy in January 2005.
Mr. Campbell expressed his grateful appreciation to the United States Postal Inspection Service, the agency that led the government’s investigation, and thanked the Securities and Exchange Commission for its assistance.
The government’s case was prosecuted by Assistant United States Attorneys Scott B. Klugman, Ilene Jaroslaw, James G. McGovern, Tanya Y. Hill, and Laura Mantell.
Name: BRADLEY STINN
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