Law & Justice

Springfield Man Charged In Microcap Stock Manipulation Scheme


NEWARK, NJ – Acting U.S. Attorney William E. Fitzpatrick announced that the owner of a purported business consulting firm was arrested today for operating a $1.1 million scheme that artificially inflated the stock price of a publicly traded company he controlled.

According to the announcement, Springfield resident, James Farinella, 46, is charged with one count of securities fraud.  He was scheduled to appear Wednesday June 21 at 2:30 p.m. before the U.S. Magistrate Judge Leda D. Wettre in Newark federal court.

The maximum potential penalty for the securities fraud count is up 20 years in prison and a $5 million fine per the complaint. 

Sign Up for E-News

According to the complaint: 

From June 2012 through December 2012, Farinella and others allegedly operated a “pump-and-dump” stock manipulation scheme to fraudulently inflate the prices of Pazoo Inc. (PZOO). Pazoo had little or no real business operations, and when it started trading in June 2012, Farinella controlled 98 percent of the free-trading shares in Pazoo.

Farinella and other conspirators allegedly “pumped” the price of those shares by orchestrating a series of trades between accounts they controlled to create the appearance that Pazoo stock was rising in price and heavily traded. In order to further inflate the prices, Farinella and his conspirators also disseminated misleading promotional materials to lure investors to purchase the stocks, including touting Pazoo as a leading provider of nutritional supplements for people and their pets.

After pumping the stocks, Farinella and his conspirators “dumped” them by selling large volumes of the stock to investors at artificially inflated prices. The companies’ stock prices then dropped, causing victims of the scheme to suffer losses. The alleged stock manipulation scheme generated approximately $1.1 million in gross trading proceeds.        

The securities fraud count carries a maximum potential penalty of 20 years in prison and a $5 million fine.

The charge and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.

The U.S. Securities and Exchange Commission (SEC) is filing a civil complaint against Farinella today.

Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation. He also thanked the U.S. Securities and Exchange Commission’s New York Regional Office, under the direction of Andrew Calamari, for its assistance in this matter.

The government is represented by Assistant U.S. Attorney Justin S. Herring of the U.S. Attorney’s Office Economic Crimes Unit in Newark.

TAP Into Another Town's News:

You May Also Be Interested In

Sign Up for E-News

Millburn/Short Hills

Millburn Recreation Accepting Memberships for Pool, Tennis and Golf

February 19, 2018

MILLBURN, NJ - The Millburn Township Recreation Department announced that it is accepting memberships for the township pool, tennis and golf facilities. The memberships are available to all Millburn Township residents and the applications are available online.

The membership application can be accessed at or go ...

Millburn Police Investigating Theft at Louis Vuitton Store

March 13, 2018

On March 6, 2018 Millburn Police Officer McMillan stopped a 2003 Acura 3.2 on Parsonage Hill/Passaic for having no front plate and tinted windows. The investigation led to the arrest of 33 year old Horace Hall Jr of Newark for possession of a controlled dangerous substance (marijuana) and possession of drug paraphernalia. Mr. Hall Jr was released on a summons.

On March 6, 2018 Millburn Police ...


AtlantiCast: Episode 13

On this episode of AtlantiCast, new clinical studies in the fields of cardiology and immunotherapy, national and statewide recognitions for Atlantic Health System medical centers and the inaugural AtlantiCast Collab Challenge!


Upcoming Events


Wed, March 21, 8:30 AM

St. Vincent Martyr School, Madison

Open House for Preschool, Kindergarten & First ...



Wed, March 21, 6:00 PM

Barnabas Health Ambulatory Care Center, Conference Room A/B, First Floor, Livingston

Colon Cancer Screening Education Program at Saint ...

Health & Wellness


Thu, March 22, 7:00 PM

Millburn Free Public Library, Millburn

My Clutter is Taking Over! with Jamie Novak at ...

Home & Garden


Mon, March 26, 9:00 AM

My Tech Learning STEM EdVenture Lab, Livingston

Calling All Artists & Inventors to My Tech's ...

Arts & Entertainment Education

All-Star Basketball Event Coming to Millburn

March 17, 2018

Millburn All Stars vs. Pros – Saturday March 24, 6:00 pm

Community Event at Millburn High School

On Saturday, March 24th, the Millburn High School Senior Celebration 2018 Committee is partnering with Dreams for Kids, Inc., to present Millburn All-Stars vs. Pros.

At the All-Star Basketball event, a team of NFL players will take on teams from the Millburn/Short Hills ...

Millburn Summer Pool Employment

The Millburn Recreation Dept. is accepting applications for  Lifeguards andthe Assistant Manager and head Swim Coach positions at the Township Pool.  Interested persons may apply at the Recreation Dept. in Town Hall or visit to download an employment application.

Email inquiries to or call 973-564-7064 for further ...

Lightbridge Academy in Millburn Hiring Assistant and Lead Teachers

If you are passionate about educating and nurturing young minds, you may fit right in with our family! Lightbridge Academy is currently hiring Assistant and Lead Teachers to join our team and grow with us!

If you would like to learn more about the positions offered, you can reach us at 973-218-1800.