Laurance Brown, an accountant for the Armonk-based Marshall Granger & Company LLP who was sentenced to five years in prison for his role in a $2 million fraud scheme, said he will be heading to jail at the end of January.
"It wasn't a favorable sentence but it was less than what it could have been," he said in a telephone interview. "I'm happy it's over."
Brown admitted his guilt but declined to discuss the case.
Ronald J. Mangini, Brown's former partner at Marshall Granger & Company LLP in Armonk, said the firm folded 18 months ago in response to the charges brought against Brown.
"We've been out of business since the SEC came to investigate," he said. "It broke us up."
Brown pleaded guilty in September and was sentenced Wednesday to the prison term for fraudulently selling the common stock and promissory notes of Infinity Reserves, an inoperative company that was owned by a Marshall Granger client, the United States District Attorney said.
According to the US Attorney, Brown falsely held himself to be an officer of Infinity Reserves who was authorized to sell its securities. Brown received at least $2.1 million from the sale of the phony stock, law enforcement officials said. He took most of the investor funds for personal use, gave some to his wife and daughter and paid other investors $136,550.
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