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HealthTech Chairman, Stockbroker Convicted

May 12, 1999|Times Wire Services

The chairman of HealthTech International Inc. and a stockbroker were convicted of stock manipulation in a trial that had its origins in the government's efforts to crack down on mob infiltration of Wall Street. HealthTech Chairman Gordon Hall and broker Michael Motsykulashvili, formerly of Meyers Pollock & Robbins in New York, were found guilty by a jury in federal court in Manhattan. They were convicted of conspiring to illegally promote HealthTech stock so the shares could be sold at inflated prices. They are among 20 people charged since November 1997 with making more than $1.3 million in illegal profits from hyping HealthTech, a health club chain based in Mesa, Ariz., that also operates health clubs in California. Prosecutors said investors in California, New York and five other states lost millions of dollars because of the conspiracy. Neither defendant testified during the trial.

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