An Indialantic man faces serious charges for allegedly taking part in a “pump and dump” scheme that netted over $3.3 million in illegal profits.
In the early-morning hours of Nov. 15, agents from the Federal Bureau of Investigation served Chris Romandetti Sr. with an arrest warrant at his home, accusing him of conspiring to commit securities fraud, wire fraud, money laundering, and personally receiving $560,000 in kickbacks.
Indialantic police were on hand to assist, and traffic on the street in front of Romandetti’s home on N. Riverside Drive was temporary rerouted. Police Chief Michael Casey said it’s rare for his department to receive a request like this from the FBI.
“But when any law enforcement agency asks for assistance, we comply with their request,” Casey said. “They were wanting us to stand by with a marked patrol vehicle while they executed their arrest warrant.”
Romandetti, 57, was released after posting a $200,000 bond and agreeing to abide with an order setting the conditions of his release. On Friday afternoon, it seemed to be business as usual at the First Choice Medical office on Harbor City Boulevard. The door was still open to serve clients.
The Securities and Exchange Commission (SEC) alleges that Romandetti, who serves as president and chief executive officer of First Choice Healthcare Solutions on U.S. 1 in Melbourne, colluded with others to “pump” the company’s stock price from under $1 per share to $3.40 per share by buying up large quantities of it.
According to the SEC complaint, “the defendants used multiple accounts in an attempt to disguise their trading, engaged in manipulative trading practices, and hired Elite Stock Research, a boiler room run by co-defendant Anthony Vassallo, to promote First Choice to vulnerable investors, some of who invested retirement savings.”
Romandetti is well known in the area. For many years through his company First Choice, he often contributed to local causes including a $1,000 donation in 2012 that enabled the Indialantic Police Department to obtain new graphics for two patrol cars. Earlier this year, he was again recognized by the town for donating patrol car decals. He was also an avid sponsor of the Space Coast Sports Hall of Fame.
On its website, Melbourne-based First Choice Healthcare Solutions is described as “one of the nation’s only non-physician-owned, publicly traded healthcare services companies focused on the delivery of orthopaedic care and treatment.”
A determination of counsel hearing was set to take place Nov. 21 at 10 a.m. at the federal courthouse in Orlando.
