Bermuda stockbroker Paul Lemmon, has been sentenced to 21 months imprisonment followed by two years supervised release for his role in the "Bermuda Short" securities fraud conspiracy. He was also fined $7,500.

According to Canada Stockwatch, Lemmon, a Canadian national, was sentenced on February 21st by Judge Wilkie Ferguson, of United States District Court for the Southern District of Florida in Miami.

Lemmon previously ran the Voyager Group in Bermuda and acted as a front for Mark Valentine, the former head of Thomson Kernaghan & Co. Ltd,. a Toronto based brokerage. He pleaded guilty in mid-December to assisting Valentine in a wire and securities fraud which involved bribing mutual fund managers to promote worthless stocks.

The conspiracy was uncovered by the FBI and the Royal Canadian Mounted Police in an undercover sting - Operation Bermuda Short.

Valentine, Lemmon and others were caught when they paid cash bribes or kickbacks to an undercover agent, posing as a corrupt stock promoter.

Lemmon managed to negotiate a plea bargain deal in exchange for full co-operation with the authorities. He pleaded guilty to one count of conspiracy to commit wire and securities fraud and the other two counts on his grand jury indictment were dropped at sentencing.

He is expected to give evidence against his former associate when Valentine's trial commences in late March.

Lemmon has escaped fairly lightly. The original charges which still stand against Valentine carry maximum sentences of 15 years in jail and over $1 million potential fines.