Ex-healthcare CEO pleads guilty in fraud scheme

The former CEO of a Melbourne, Fla.-based healthcare network charged in a "pump-and-dump" scheme pleaded guilty May 24 to conspiracy to commit securities fraud, according to the Justice Department

Christian Romandetti Sr., the former CEO of First Choice Healthcare Solutions, defrauded investors by artificially controlling the volume and price of traded shares of FCHS between May 2013 and June 2016. Mr. Romandetti and others allegedly fraudulently concealed their control of company stock to execute the scheme, according to the Justice Department.

"Through deceptive means, the defendant cheated his investors, many of whom were elderly," said Breon Peace, U.S. attorney for the Eastern District of New York. "With today's guilty plea, Christian Romandetti, Sr. is held responsible for orchestrating and profiting from a pump-and-dump scheme involving shares of his own healthcare services company." 

When sentenced, Mr. Romandetti faces up to five years in prison, according to the Justice Department. 

First Choice Healthcare Solutions is a network of medical centers, which specialize in orthopedics, neurology, interventional pain management and related services.

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