This Day In Market History: Robert Brennan Fined For Securities Fraud

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

On this day 24 years ago, a judge ruled infamous penny stock pump-and-dumper Robert Brennan must pay $71.5 million in penalties and fines for securities fraud.

Where The Market Was

The Dow closed at 4,500.56. The S&P 500 traded at around 544.98. Today, the Dow is trading at 26,504 and the S&P 500 is trading at 2,926.

What Else Was Going On In The World?

In 1995, a domestic terrorist bombing attack on the Alfred P. Murrah Federal Building in Oklahoma City killed 168 people and injured another 680. After shocking the sports world by retiring to play professional baseball in 1993, NBA legend Michael Jordan returned to the Chicago Bulls. The average annual American income was $35,900.

Penny Stock Scammer Fined

Robert Brennan was the head of penny stock brokerage firm First Jersey Securities, which specialized in preying on ignorant investors and manipulating illiquid penny stock prices via pump-and-dump schemes. First Jersey television commercials featured Brennan standing next to a company helicopter and inviting unsuspecting investors to join in the fun.

Instead, the SEC found that Brennan and First Jersey had swindled investors out of more than $27 million and had manipulated the stock prices of at least six penny stocks.

First Jersey declared bankruptcy in 1987, and Brennan was ordered to pay more than $70 million in fines. In 2001, Brennan was convicted for money laundering and sentenced to more than nine years in prison. Brennan was released from prison in 2011.

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