Jersey man charged in $130 million scam

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LOS ANGELES, Sept. 11 (UPI) -- Federal authorities in Los Angeles charged a New Jersey man Thursday with conspiring to fraudulently obtain more than $130 million in loans.

The U.S. Attorney's office said Kenneth D'Angelo, 60, of Edison, agreed in advance to plead guilty to two fraud counts stemming from the collapse of GenesisIntermedia, which in turn led to the failure of two brokerages.

"The scheme involving GenesisIntermedia is yet another way to misrepresent the true value of a company and undermine the integrity of the securities markets," U.S. Attorney Debra Yang said in a statement.

According to Yang, D'Angelo and uncharged cohorts allegedly used false data entries at the brokerages to pump up the GenesisIntermedia share price, and then use their shares as collateral for personal loans totaling in excess of $130 million.