Ex-Van der Moolen trader may plead guilty -filings

By Paritosh Bansal

NEW YORK, Dec 4 (Reuters) - A former Van der Moolen Specialists (VDMN.AS: Quote, Profile, Research, Stock Buzz) employee may plead guilty next week in a case involving phony finders' fees and illegal kickbacks in the stock-loan industry, according to court filings.

Brian Fabrizzi, who was the co-head of Van der Moolen Specialists USA LLC's stock loan department, is scheduled to appear before U.S. District Judge John Gleeson in Brooklyn, New York, on Dec. 14 for a "change of plea hearing," according to recent court filings.

Fabrizzi pleaded not guilty in the case in September.

Fabrizzi's lawyer declined to comment, while a spokesman for the U.S. attorney's office in Brooklyn could not be reached immediately for comment.

Usually such a hearing means the defendant will plead guilty, said C. Evan Stewart, a partner at Zuckerman Spaeder. Stewart is not involved with the case.

There is no guarantee the hearing will occur as scheduled. It has been postponed once, and a Nov. 27 entry on the online court docket said the two sides were still in negotiations, although a court document from the same day also said the defendant was "ready to plea."

Fabrizzi was charged with conspiracy to commit securities and wire fraud, according to the indictment. He agreed to get his company to pay fees in certain cases when no legitimate finder services were rendered in exchange for a portion of that payment, according to the indictment.

Stock loans are made as part of a short sale or other transactions that require the investor to borrow shares. Finders are third parties who, for a fee, locate a counterparty for stock loans.