Chad Peter Smanjak Cops to Scam with Sports Drink Named After Notre Dame's Famous Rudy
Chad Peter Smanjak, 38, copped in U.S. District Court to one count of conspiring to commit securities fraud and, as part of a plea deal, he will pay full restitution to be determined to more than 250 marks. He is also likely to draw five years in prison.
Smanjak and others obtained millions of shares of penny stock in the Rudy Nutrition sports drink company and then pumped up the trading volume by trading it among themselves and issuing misleading press releases. They then dumped the stock on the market until federal regulators halted trading in 2008. The feds call these "pump and dump" scams, and Smanjak enjoyed a $5.2 million profit.
Feds Allege "Pump and Dump" Fraud Involving Panamanian Banks, Long Beach Fugitive and Sports Drink Named After Notre Dame's Rudy
|David "Rudy" Ruettiger|
Smanjak fled to his native South Africa in 2010 after authorities executed a search warrant. He was arrested in January in Johannesburg by special agents with U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) Attaché office in Pretoria and members of South Africa's Police Services. Smanjak waived extradition and voluntarily returned to the U.S. to face charges.