Brokerage Owner Is Convicted of Fraud

The owner of a now-defunct brokerage was convicted on securities charges for his role in a scheme to manipulate trading in over-the-counter shares of Newport Beach-based Internet gaming company Netbet Inc. that cost investors $12 million, prosecutors said.

David Rutkoske, formerly of Lloyd Wade Securities, was convicted of one count of conspiracy and one count of securities fraud by a jury in U.S. District Court in New York. He faces as many as 15 years in prison.