A defendant in a “pump and dump” stock-fraud case was ordered detained Friday and told to surrender his foreign accounts as he appeared in federal court in Buffalo for the first time.
Magistrate Judge H. Kenneth Schroeder Jr. ordered Eric Cusimano to repatriate his foreign bank accounts — in Belize and Panama — and make them available to federal prosecutors. The more than $260,000 will be returned to Cusimano if he is not ordered to forfeit the money at the conclusion of his case.
Schroeder also granted a prosecutor’s request that Cusimano be taken into custody, and he was handed over to the U.S. Marshals Service. Cusimano and his attorney did not object to either move, according to court records.
His wife, Jessica Cusimano, was allowed to remain free after her initial court appearance on Monday. She has been charged with money laundering.
The case involving the Cusimanos, who have a home in the Chautauqua County community of Lakewood, has already led to convictions in New York City. The government alleges several people schemed to artificially inflate the value of penny stocks and dupe unsuspecting investors.
A third defendant, Jamie Boye, is being held in the Cattaraugus County Jail, according to a court document. He is to appear in federal court June 24.
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