Rockville investor, Teyibo, convicted in trading scheme

March 23, 1995|By Bloomberg Business News

NEW YORK -- A Rockville investor accused of duping Wall Street powerhouses into making more than $400 million in bogus securities trades was convicted yesterday on all 17 counts on which he was charged.

Daniel Teyibo was found guilty of making misrepresentations and providing bogus financial statements to various brokerages, including Prudential Securities Inc., Goldman Sachs & Co. and Bear Stearns Securities Corp.

Teyibo was arrested in August 1993 for the alleged "free riding" scheme in which prosecutors said he ordered U.S. Treasury securities without having the money to cover potential losses.

During the four-week trial in federal court in Manhattan, prosecutors detailed how Teyibo persuaded six firms to buy securities on his behalf by falsely claiming his company had more than $4 billion in assets. The brokerages were said to have lost a total of more than $500,000 as a result.

Prosecutors said Teyibo used a variety of aliases and made up a variety of fictitious names for investment banks he worked for to coax brokerages into doing business with him.

Teyibo faces up to five years in prison on each count. Prosecutors said he will remain in custody pending his sentencing, scheduled for June 28.

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