N.Y. brokers accused of $6.2m fraud

District Attorney Robert Morgenthau said the workers at the now-defunct Joseph Stevens & Co. collected $6.2 million in illegal fees by duping investors into buying stocks at inflated prices. Morgenthau said about 800 people were victimized by the scheme.

Prosecutors allege the brokers would commit to buying a large block of shares at a discount, then wait until the stock ticked up in value before buying it for clients. Morgenthau said the brokers never told the customers that they were recommending the stock to earn additional money for themselves.