Securities Broker Must Serve 18 Years in Prison and Pay More Than $200,000
By Danielle Briones
Published on January 20, 2006
Daniel Baldwin Jr. pleaded guilty to securities fraud for buying shares of his boss' startup company, eChapman.com Inc.
Baldwin spent hundreds of thousands of dollars worth of his clients' money on the shares, which later became worthless.
Originally sold at $13 per share, eChapman stock decreased by 40 percent on its first day of trading in 2000, and two years later was down to pennies per share.
The stock was eventually removed from Nasdaq trading.
Baldwin and his former boss David Chapman are still defendants in a civil lawsuit brought by the Securities and Exchange Commission, regarding the use of pension money to buy stock.
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