Eugene Lombardo sent to prison for eight years
NEW YORK - Eugene Lombardo, an alleged associate of the Bonanno crime family, received a prison sentence of eight years for his role in a 1997 conspiracy that artificially inflated the stock price of HealthTech International Inc., a Mesa, Ariz.-based owner of health and fitness centers. The scheme made more than $1.3 million for its participants, while duping unwitting investors.
Lombardo's sentence fell in the midrange of federal sentencing guidelines. U.S. district Court Judge Denny Chin, who did the sentencing, also ordered Lombardo to pay $200,000 in restitution and to stay away from organized crime members.
Lombardo was one of the four men who admitted that they took part in the conspiracy. In May, a federal jury convicted HealthTech Chairman Gordon Hall of 12 counts, including racketeering, and securities and wire fraud. He is awaiting sentencing.
[SOURCE: The Associated Press]