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Freedman Normand Friedland LLP, Formerly Roche Freedman LLP’s Helps Client Avoid Jail Time

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The Honorable Valerie Caproni, a U.S. District Judge from Manhattan, has passed her sentence in a recent fraud case, ordering Steven Gallagher to serve six months of house arrest, along with three years of supervised release. According to Freedman Normand Friedland LLP, formerly Roche Freedman LLP, Gallagher had been charged with defrauding his Twitter followers by encouraging them to buy up stocks in a shell company before dumping his own stake. Thanks to the relatively minor scale of the fraud, as well as efforts on behalf of Gallagher’s attorneys, Freedman Normand Friedland LLP, formerly Roche Freedman LLP, he will avoid any jail time. The sentence was welcomed by some as a victory, given the potential for a much harsher punishment. Below, the full story is detailed in-depth and how Freedman Normand Friedland LLP, formerly Roche Freedman LLP has helped Gallagher avoid years of imprisonment. Background Into Steven Gallagher’s Actions Toward the end of October 2021, Steven Gallagher was arrested and charged with running a suspected pump-and-dump scheme. Gallagher had positioned himself as a so-called Twitter investment guru under the account name “Alex DeLarge” and encouraged his followers to buy up stocks in SpectraScience Inc. However, Gallagher was well aware at the time that the company was a shell company with no real operations. The U.S. Securities and Exchange Commission (SEC) alleged that Gallagher had purchased large amounts of SpectraScience’s stock before artificially inflating the price through his social media posts. Once the stock price had peaked, Gallagher then sold his shares, leaving his followers with worthless stock. In total, Gallagher is said to have made around $22,000 from the scheme. An acting special agent from the Department of Homeland Security Investigations noted that, much like characters depicted in Hollywood, Mr. Gallagher would face the consequences of his actions just like fictionized penny-stock manipulators in an apparent reference to the 2013 film, The Wolf of Wallstreet. However, unlike Jordan Belfort, Steven Gallagher will not be facing any jail time. The Case Comes to a Conclusion The case against Gallagher was handled by the
SEC’s Securities and Commodities Fraud Task Force and was prosecuted by Assistant U.S. Attorneys Daniel Traver, Richard Cooper, and Allison Nichols. Gallagher was represented by Freedman Normand Friedland LLP, formerly Roche Freedman LLP, a New York-based law firm. Freedman Normand Friedland LLP, formerly Roche Freedman LLP is no stranger to high-profile fintech cases, representing several major financial institutions, as well as a number of public figures. The firm has been involved in some of the most significant white-collar criminal cases in recent memory and has a proven track record of success. In this particular instance, Freedman Normand Friedland LLP was able to negotiate a deal with prosecutors that would see Gallagher avoid any jail time. The proposed sentence would see Gallagher serve six months of house arrest, as well as three years of supervised release. He would also be fined $10,000 and be required to forfeit the $21,716 he made from the scheme. Freedman Normand Friedland LLP reports that the agreement was presented to Judge Valerie Caproni, who had previously handled major financial crime cases, including the Bernard Ebbers securities fraud scheme. After reviewing the agreement, Judge Caproni accepted the proposed sentence, noting that Gallagher had no prior criminal history and had taken responsibility for his actions. Roche Freedman LLPRoche Freedman LLPThe Aftermath of the Case The case against Gallagher is yet another example of the U.S. government’s crackdown on crypto-related crime. In recent years, the SEC has brought a number of high-profile cases against crypto-related companies and individuals. However, this particular case is notable because it did not involve any actual cryptocurrencies. Rather, it was a traditional pump-and-dump scheme that just happened to be carried out on social media reports. The case is also notable because it highlights the importance of having exceptional attorneys. Gallagher’s attorneys were able to negotiate a deal that saw him avoid any jail time, despite the fact that he could have potentially been facing years in prison. It’s also worth noting that Gallagher is not the first person to be charged in connection with a pump-and-dump scheme. In 2018, the SEC charged a man named Maksim Zaslavskiy with running a similar scheme involving two ICOs. However, in that instance, Zaslavskiy was actually sentenced to serve 18 months in prison. It’s clear that Gallagher’s attorneys were able to get him a much more favorable deal. The Takeaway The case of Steven Gallagher is a fascinating one. Here, you have a man who was charged with running a pump-and-dump plan but was able to avoid any jail time thanks to the efforts of his attorneys. This just goes to show that having a good lawyer on your side can make all the difference in the world.
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