Executive Pleads No Contest in Fraud
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A former officer of a West Hollywood precious metals firm that allegedly bilked about 3,000 investors out of more than $30 million in three years has pleaded no contest--the legal equivalent of guilty--to six felony charges in Los Angeles Municipal Court.
Peter Shermet, 25, former vice president of the now-defunct Coinex International Inc., pleaded no contest Tuesday to five counts of selling unregistered securities and one count of using a scheme or device to defraud people.
Shermet and Edward Mazur, 38, Coinex’s president, were named in a criminal fraud complaint last month by the district attorney’s office. Prosecutors said investors were solicited by telephone to make a 50% down payment on coins that Coinex would hold for one year as their value appreciated.
Investigators found that most of the money went to Mazur, Shermet and their sales staff.
Shermet will be sentenced on June 4. A preliminary hearing for Mazur is set for March 25.
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