THOUSAND OAKS : Surgeon Convicted in Stock Fraud Case

A Thousand Oaks plastic surgeon has been convicted by a federal jury of conspiracy and securities and wire fraud in connection with the stock manipulation of a now-defunct Thousand Oaks firm.

Robert Gutstein faces up to 25 years in prison as well as several million dollars in fines and restitution at his sentencing Aug. 12.

Gutstein was found guilty of conspiring with three other defendants to manipulate the stock price of Magna Technologies Inc., a “shell corporation with few assets, no business income and substantial debts,” Special Assistant U.S. Atty. Thomas Sjoblom said.

Gutstein also was found guilty of two counts of wire fraud. He was acquitted of 13 related counts.

In the indictment, Gutstein and his co-defendants were accused of using the corporation as a way to manipulate the over-the-counter stock market, causing the stock to rise artificially by a variety of methods, Sjoblom said.

The price rose from its March, 1985, level of 50 cents a share to a September, 1985, peak of $9.50 a share. The stock collapsed to essentially no value soon thereafter.