Two men Tuesday admitted conspiring with a nationally syndicated talk show host to mislead listeners who invested nearly $21 million in radio and wireless cable operations.
Philip R. Forma and Alan Herr pleaded guilty in the case against Irwin H. "Sonny" Bloch and four telemarketers, all of whom have pleaded not guilty.Prosecutors say Bloch and the others used his show, which had been heard on 170 stations around the nation, to promote investments in unprofitable radio stations and "marginal" wireless cable operations.
Forma, 50, pleaded guilty to a single felony charge of conspiracy to commit interstate transportation of property obtained by fraud. Herr, 41, pleaded guilty to the same charge and also to a separate count of wire fraud.
As part of their plea bargain, Forma and Herr agreed to cooperate with investigators.
Bloch, whose "The Sonny Bloch Show" aired six days a week for 15 years, is also facing a related complaint by the U.S. Securities and Exchange Commission, as well as lawsuits from at least two groups of investors.
Prosecutors are also investigating whether Bloch had sex with underage girls. That probe stems from videotapes that authorities seized at his home and office in Tampa, Fla., in February.
Bloch, 58, has denied any wrongdoing. The criminal charges against him carry sentences totalling 360 years in prison and millions in fines.
Forma faces up to five years in prison and a $250,000 fine; Herr 15 years and a $500,000 fine.