LOS ANGELES – Federal authorities have arrested 14 people named in two federal indictments that allege long-term schemes to manipulate stock prices that led to more than 20,000 investors losing over $30 million when artificially inflated stock prices collapsed.
Full Answer
How many federal indictments charge 15 defendants in stock fraud?
Two Federal Indictments Charge 15 Defendants in Plots that Fraudulently Inflated Stock Values and Laundered Profits through Offshore Accounts
Where can I find David Lawrence's stock manipulation report?
This report was posted on Ripoff Report on 01/07/2014 08:16 PM and is a permanent record located here: https://www.ripoffreport.com/reports/investors-hub-ihub/internet/investors-hub-ihub-david-lawrence-ironridge-stock-manipulation-bullying-investors-int-1113767 . The posting time indicated is Arizona local time.
What is the Mazur indictment?
The Mazur indictment alleges that the nine defendants conspired to commit securities fraud and wire fraud.
How did traders use multiple accounts to manipulate stock prices?
For example, according to the SEC's complaint, the traders used multiple accounts to place several small sell orders to drive down a stock’s price before using a different set of accounts to buy larger amounts of the stock at the artificially low prices.
Can you go to jail for market manipulation?
For example, 7 U.S. Code Section 13 makes it a felony punishable by a fine up to $1,000,000 and up to 10 years imprisonment to “manipulate or attempt to manipulate the price of any commodity in interstate commerce.” However, to get a conviction, the prosecutor generally must prove beyond a reasonable doubt that the ...
Is stock price manipulation a crime?
Market manipulation is illegal in the United States under both securities and antitrust laws. Securities laws and related SEC rules broadly prohibit fraud in the purchase and sale of securities, and the Securities Exchange Act of 1934, Section 9, specifically makes it unlawful to manipulate security prices.
What is a market manipulation violation?
Common Securities Violations It's just like what it sounds. When fraudsters manipulate the market, they engage in conduct that creates an artificial price for a security, thus interfering with the free and fair operation of the market.
Is pumping stocks illegal?
Key Takeaways. Pump-and-dump is an illegal scheme to boost a stock's or security's price based on false, misleading, or greatly exaggerated statements. Pump-and-dump schemes usually target micro- and small-cap stocks. People found guilty of running pump-and-dump schemes are subject to heavy fines.
How do you prove stock manipulation?
Here are 10 ways to recognize if your stock is being manipulated by hedge funds and Wall Street parasites.Your stock is disconnected from the indexes that track it. ... Nonsense negativity on social media. ... Price targets by random users that are far below the current price. ... Your company is trading near its cash value.More items...•
How do you prove market manipulation?
0:033:40What do regulators need in order to prove market manipulation?YouTubeStart of suggested clipEnd of suggested clipThat a large group of traders coordinated to either purchase the shares in order to drive up theMoreThat a large group of traders coordinated to either purchase the shares in order to drive up the price. And or hold those shares in order to keep the price artificially.
Can you sue someone for market manipulation?
Under federal law, individuals are liable for fraud when they manipulate markets for securities, swaps, commodities, or futures.
Who oversees market manipulation?
How the Securities and Exchange Commission (SEC) Works. The SEC consists of five divisions and 23 offices. 2 Their goals are to interpret and take enforcement actions on securities laws, issue new rules, provide oversight of securities institutions, and coordinate regulation among different levels of government.
Is market maker manipulation illegal?
It's illegal, but the clerk could take the physical ticket, switch the account number on the bottom, and tell the original broker the stock was purchased for $10.12. Incidentally, market makers will pull this same trick, buying and selling the stock for their own accounts and using your trade as a cover.
Can you go to jail for a pump and dump scheme?
Pump and dump crimes may result in various legal and criminal penalties, which include: Misdemeanor charges or felony charges, depending on the extent of the scheme and the amount of money which was involved; Criminal fines; Jail or prison time; and.
Do market makers manipulate stock prices?
Market Makers make money from buying shares at a lower price to which they sell them. This is the bid/offer spread. The more actively a share is traded the more money a Market Maker makes. It is often felt that the Market Makers manipulate the prices.
Are penny stocks illegal?
Are Penny Stocks Illegal? Penny stocks are legal, but they are often manipulated. Penny stocks get their name because of their low share price. Any stock trading below $5 a share is generally considered a penny stock.
How did the stock market get inflated?
fraudulently inflated the prices and trading volumes of the companies’ stocks through slick marketing campaigns, misleading press releases, payments to stock promoters, and “cross-trading” among co-conspirators that made it appear the stocks were being actively traded;
What are the defendants in the e-commerce scam?
According to court documents, the defendants are serial market manipulators who carried out several fraudulent deals each year, each of which generated several million dollars. The defendants generally targeted marginal companies operating in areas they believed could easily be touted as generating breakthroughs or deals that would explain sudden increases in trading volume and price, including companies purportedly involved in pharmaceuticals, hair restoration, green technologies, entertainment, oil and gas development, and e-commerce websites. The indictments allege that increased trading volume and higher stock prices were actually the result of the defendants’ fraudulent actions. A company CEO brought into one of the schemes summed up a typical deal during a wiretapped call: “There's nothing in there, there’s nothing to the company. It’s monkey business.”
How did the SEC manipulate the stock market?
The SEC alleges that the traders, who are primarily based in China, manipulated the prices of thousands of thinly traded securities by creating the false appearance of trading interest and activity in those stocks, thereby enabling them to reap illicit profits by artificially boosting or depressing stock prices.
Who conducted the SEC investigation?
The SEC's investigation was conducted by Andrew Palid and Michele T. Perillo of the SEC's Market Abuse Unit in the Boston Regional Office with assistance from John Marino of the Market Abuse Unit, and was supervised by Mr. Sansone.
Who were the two traders in the Xiaosong Wang case?
In a parallel action, the U.S. Attorney's Office for the District of Massachusetts announced criminal charges against two of the traders, Jiali Wang and Xiaosong Wang.
Who sold inferior products that failed after a short period of time?
Septic Solutions, Inc. Sold me inferior products that failed after a short period of time. Dieterich Illinois
Who sold us a sloppy unfinished home?
John Holbert B & H Construction Rohoss Unethically took advantage of our position and sold us an extremely sloppy unfinished home. Conroe, Montgomery...
Is Investors Hub a scam?
Yet, the scams continue on a daily basis. The criminals that run IHUB, the ADMINs and David Lawrence (the ignorant bully that runs legal) are all involved in elaborate stock manipulation schemes that are illegal.
How many people were arrested in California in 2013?
U.S. Attorney’s Office February 14, 2013. Central District of California (213) 894-2434. LOS ANGELES—Federal authorities have arrested 14 people named in two federal indictments that allege long-term schemes to manipulate stock prices that led to more than 20,000 investors losing over $30 million when artificially inflated stock prices collapsed.
What is an indictment?
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
What are the defendants in the e-commerce scam?
According to court documents, the defendants are serial market manipulators who carried out several fraudulent deals each year, each of which generated several million dollars. The defendants generally targeted marginal companies operating in areas they believed could easily be touted as generating breakthroughs or deals that would explain sudden increases in trading volume and price, including companies purportedly involved in pharmaceuticals, hair restoration, green technologies, entertainment, oil and gas development, and e-commerce websites. The indictments allege that increased trading volume and higher stock prices were actually the result of the defendants’ fraudulent actions. A company CEO brought into one of the schemes summed up a typical deal during a wiretapped call: “There’s nothing in there, there’s nothing to the company. It’s monkey business.”
Who are the defendants in the Mazur case?
They are Sherman Mazur, 63, of the Westwood district of Los Angeles, who controlled a company called the London Finance Group, Ltd.; Ari Kaplan, 40 of Venice, who is Mazur’s nephew and was his partner in the London Finance Group, as well as in a series of other business endeavors; Grover Henry Colin Nix IV (who generally used the name “Colin Nix”), 39, of the Los Feliz district of Los Angeles, who controlled the Santa Monica-based Calbridge Capital LLC, which purported to be a “boutique investment banking firm”; Regis Possino, 65, of the Pacific Palisades district of Los Angeles, a now-disbarred attorney who was Nix’s partner at Calbridge Capital; Edon Moyal, 32, of Carlsbad, California, who controlled a company called 8 Sounds, Inc. and while allegedly involved in this scheme was free on bond pending trial in a criminal case filed in federal court in San Diego; Mark Harris, 56, of Scottsdale, Arizona, a stock promoter who controlled Apache Capital LLC, an investor relations firm in Scottsdale; Joey Davis, 46, of the Los Feliz district of Los Angeles, who controlled Scripted Consulting Group, a public relations firm in Los Angeles and who was allegedly involved in this scheme while free on bond pending trial in a criminal case filed in federal court in Los Angeles; Curtis Platt, who turned 51 today, of Sarasota, Florida, who controlled Big Dog International LLC; and Dwight Brunoehler, 62, of Maitland, Florida, who is the CEO of Biostem, a company based in Clearwater, Fla.
Who is the man behind the Mazur scheme?
One indictment alleges a scheme led by Sherman Mazur and his nephew, Ari Kaplan, charging that they “perpetrated a multi-million-dollar scheme to fraudulently inflate the prices and trading volumes of public company stocks and then sell millions of shares of those companies at the fraudulently inflated prices to the investing public for substantial profits.” The indictment alleges that the scheme involved a number of companies, but focuses on deals involving two businesses—GenMed, which purported to develop, manufacture, and distribute generic pharmaceuticals; and Biostem, which purported to develop and license regenerative stem cell treatments, including hair regrowth technology.
Where are Mazur and Possino being held?
The defendants arrested yesterday morning—all of the charged defendants except Angelastri—made their initial appearances in federal courts in the districts where they were arrested. Mazur and Possino, both of whom entered not guilty pleas to the charges in their indictments, are currently being held without bond, but they are scheduled to have detention hearings next week in U.S. District Court. Trial dates for both cases were scheduled for April 9 in federal court in Los Angeles.