Florida jury convicts Mitchell J. Stein in Signalife fraud case

A jury in Florida has found Mitchell J. Stein guilty on all 14 counts related to a multimillion-dollar  manipulation scheme involving shares of Heart Tronics Inc. (Pink Sheets: HRTT), formerly known as Signalife Inc.

Signalife was featured in a Sharesleuth investigation in 2008. That story presented evidence that Stein, a lawyer who split his time between Florida and California, secretly controlled the company.

It also suggested that Stein and others had engaged in market manipulation with the help of consultants who got millions of dollars in stock.

Stein was arrested in December 2011 under an indictment charging him with securities fraud, mail fraud, money laundering, conspiracy to commit mail fraud and wire fraud, and conspiracy to obstruct justice.

The Securities and Exchange Commission also filed a civil case against Stein, the company and its co-chief executives, alleging that they falsified sales, issued misleading press releases and committed numerous other violations. That case is pending.

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