High Court Won’t Review Lawyer’s Stock Fraud Conviction

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By Phyllis Diamond

A lawyer found guilty of orchestrating a multi-million dollar stock scam Dec. 11 lost his bid for high court review of his conviction.

Attorney Mitchell Stein was convicted over his role in a pump-and-dump scheme involving Signalife Inc., a purported medical-device company of which his wife was majority shareholder, and sentenced to 17 years in prison.

In January, the U.S. Court of Appeals for the Eleventh Circuit affirmed Stein’s conviction, rejecting his claims the government knowingly relied on perjured testimony and withheld exculpatory evidence. However, it vacated Stein’s sentence, saying the government failed to justify its calculation of investor losses for sentence-enhancement and restitution purposes.

In his Aug. 14 petition for high court review, Stein said the government knowingly relied on false testimony in violation of his due process rights.

Signalife now is known as Heart Tronics Inc.

The case is Stein v. United States, U.S., No. 17-250, 12/11/17 .

To contact the reporter on this story: Phyllis Diamond in Washington at pdiamond@bloomberglaw.com

To contact the editor responsible for this story: Seth Stern at sstern@bloomberglaw.com

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