Paul Gozzo to spend 30 months behind bars for securities fraud

Paul Gozzo, managing director and sole owner of PMG Capital LLC in Jupiter, Fla., was sentenced to 30 months in prison today for engaging in securities fraud.

U.S. District Judge Donald L. Graham of the U.S. District Court for the Southern District of Florida also ordered Mr. Gozzo, 33, to serve two years of supervised release following his release from prison. In addition, Mr. Gozzo was ordered to forfeit more than $437,000 in profits generated from his criminal conduct.

According to the Department of Justice, Mr. Gozzo pleaded guilty March 17 to one count of conspiracy to commit securities fraud and one count of securities fraud. In his plea, Mr. Gozzo admitted to engaging in a market manipulation scheme with two co-conspirators to inflate artificially the prices of several publicly traded stocks.

On the same day, Mr. Gozzo and PMG settled a complaint against them filed by the Securities and Exchange Commission, alleging that they unlawfully manipulated microcap stocks over a period of two years.

Under terms of the settlement, he and the firm were prohibited from playing any role in penny stock offerings.