NEW YORK (AP) -- A former automotive-chemical CEO has been sentenced to seven to 21 years in a New York prison in a multimillion-dollar stock manipulation scheme.
James Margulies was convicted of grand larceny and other charges in July.
He said at his sentencing Friday that he didn't realize he was enabling a co-defendant's fraud until "it was too late."
The Cleveland lawyer was a finance chief and CEO of Industrial Enterprises of America Inc. Prosecutors say Margulies issued millions of shares of stock to himself and accounts he controlled. He then sold the stock and used the proceeds to boost the company's balance sheet. That upped the share price.
Prosecutors say Margulies reaped more than $7 million, spending it on luxuries including private jet travel and a $350,000 diamond ring for his wife.
