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A New York City brokerage firm with alleged gambling ties was raided on Wednesday with a number of arrests made.
The FBI closed in on the "boiler room" brokerage firm they claim was associated with the Bonanno crime family and a family soldier Anthony Guarino.
Authorities said the brokerage would artificial inflate the value of a stock in a company with misleading sales pitches -- especially to elderly victims.
Steven Kimmel was the President of the so-called "boiler-room" scheme and the offices of his Powercom/Empire firm along West 36th Street were searched by the FBI Wednesday.
Investigators said the suspects solicited through phone calls more than $12 million from unsuspecting investors who thought they were purchasing shares of stock in Realcast and BBC Gaming companies.
But 40 percent of the investors' cash was paid straight to Powercom and was never invested in Realcast or BBC Gaming, officials said.
