NEW YORK -  Dennis Michael Nouri, the former Chief Executive Officer and President of Smart Online, Reza Eric Nouri, a former Smart Online employee and brother of the CEO, and stock broker Anthony Martin were found guilty, after a three-week jury trial in United States District Court. 

From May 2005 through July 2007, Dennis Nouri and Reza Eric Nouri engaged in a fraudulent scheme designed to manipulate the price of the securities of Smart Online, which was publicly traded on the OTC-Bulletin Board. As part of the scheme, the Nouris bribed brokers, including Martin, to sell Smart Online stock to their customers so that the price of the stock went up.

Each of the defendants was found guilty of one count of conspiracy to commit securities fraud, wire fraud, and commercial bribery, and one count of securities fraud. Dennis Michael Nouri and Reza Eric Nouri each were found guilty of three additional counts of wire fraud and one count of commercial bribery.

The conspiracy and commercial bribery charges each carry a maximum sentence of 5 years in prison and a maximum fine of the greater of $250,000, or twice the gross gain or loss from the offenses. The securities fraud and wire fraud charges each carry a maximum sentence of 20 years in prison. The securities fraud charge carries a maximum fine of the greater of $5 million, or twice the gross gain or loss from the offense. Each of the wire fraud charges carries a maximum fine of the greatest of $250,000, or twice the gross gain or loss from the offense.