BROOKLYN - Nine people have been arrested in the United States and Canada as part of a massive penny stock fraud that was about to expand to Brooklyn.
U.S. Attorney Loretta Lynch says the fraud is the largest penny stock scam in history. Lynch says thousands of people worldwide were swindled out of millions of dollars through the scheme.
The suspects would gain control of worthless stock in public companies, pump up the share prices, then trade billions of shares in the penny stocks and take in the profits.
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Police say the defendants were planning on opening a new call center in Brooklyn near the Verrazano Bridge.