Snapshot of a white-collar crime

  • Article by: MARK BOSWELL , Star Tribune
  • Updated: September 13, 1997 - 11:00 PM

Authorities say a look at one deal shows the complexity of the stock scam. For almost two years, Robert Maietta and Steve McMichael would orchestrate similar trades in an obsessive, dizzying and ultimately futile con game. Here's an example of how they tried to drive up the price of Angeion shares by controlling the volume of stock traded:

* In late 1990, McMichael and Maietta open accounts at New York brokerage Feeley & Willcox through Maietta's broker. Maietta forges the name of McMichael's relative, John Fiebelkorn, and opens another account at the same brokerage.

* McMichael orders his New York broker to sell 40,000 shares of Angeion from his account, and buy them for Fiebelkorn on credit. This directed trade is illegal.

* Instead of using the proceeds of his New York sale to pay for the Fiebelkorn purchase, McMichael buys more Angeion at Minneapolis brokerage Hayne Miller Farni.

* Feeley & Willcox is forced to sell the unpaid Fiebelkorn stock. Ten thousand shares hit the market, and are bought by McMichael at his John G. Kinnard account in Minneapolis. The next day Feeley sells another 10,000 shares from the Fiebelkorn account, which Maietta buys in his account at Recom Securities in Minneapolis.

* The price of Angeion climbs. Maietta sells, putting the profits in a bank account under his control. The same day, a check for about the same amount is written from the account to McMichael.

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