Schaumburg man pleads guilty in stock fraud scheme
A 67-year-old Schaumburg man pleaded guilty in federal court to manipulating the stock price of a Hoffman Estates-based nutrition company he used to run.
Andrew J. Kandalepas entered his guilty plea to securities fraud Tuesday. He is slated for sentencing in September and faces up to 20 years in prison.
Kandalepas netted more than $136,000 from the scheme he began in December 2012, prosecutors said.
According to court records, Kandalepas would sell shares in Wellness Center USA Inc. near the close of trading and then quickly buy them back under shell accounts, which artificially inflated the value of the company's stock.
The U.S. Securities and Exchange Commission assisted federal prosecutors in the investigation.
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