HealthTech CEO Denies Allegations

The chief executive of Mesa, Ariz.-based HealthTech International Inc. denied charges that he and his company participated with organized crime in a stock-manipulation scheme that cost investors millions of dollars. Gordon Hall, CEO of the health club chain who was arrested Tuesday on racketeering and fraud charges, told Reuters he had no idea about any alleged mob involvement with his company’s stocks. “I had no idea of their [mob] involvement whatsoever in small-cap stocks or the stock market,” Hall said. “I’m as shocked as anyone else.” Bruce Ohr, an assistant U.S. attorney in New York, said Hall and 18 other men charged with duping investors in the alleged scheme spanning seven states will be arraigned in federal court in New York next week. Defendants charged with racketeering face up to 40 years in prison if convicted. Authorities allege that the Bonanno and Genovese crime families bribed brokers at Meyers Pollock Robbins Inc., a Wall Street firm, to tout HealthTech stock to the public. Thirteen of the defendants were arrested and arraigned in Manhattan. Hall was arrested in Arizona and released on his own recognizance.