10 January, 2011

United States vs. Anthony Fareri

Anthony Fareri, 45, is a former registered securities representative who operated Fareri Financial
Services, d/b/a AmeriFinancial (“FFS”), in Boca Raton, Florida. He pled guilty on September
20, 2010 to participating in a mail fraud scheme and is awaiting sentencing by a judge in U.S.
District Court for the District of Columbia. The crime involved approximately $3.675 million in
losses to more than 40 of Fareri’s stock brokerage clients in connection with the sale of two
penny stocks, American Financial Holdings, Inc. (“AFHJ”) and Secure Solutions Holdings, Inc.
(“SSLX”). According to a Statement of Offense filed at the time of the guilty plea, between
September of 2004 and October of 2006, Fareri and others teamed up to defraud Fareri’s clients.

One of Fareri’s co-schemers used nominees to acquire control of the free trading shares of AFHJ
and SSLX. He and Fareri then used matched orders to manipulate the price of the companies’
stocks to grossly inflated levels. Fareri’s customer accounts purchased shares of the stocks at
these artificially high prices at the same time that the nominees sold the shares into the market.
Fareri’s business associate made kickback payments to Fareri from his profits.

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