Tag Archives: Stock Manipulation

Two Defendants in SEC Enforcement Action Plead Guilty in Parallel Criminal Case to Charges of Securities Fraud and Lying to the SEC

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A former employee of a Boston-based biotech company and a friend of the company’s CEO, whom the Securities and Exchange Commission have charged with stock manipulation and with making false statements and a scheme to defraud, have pleaded guilty in a parallel criminal case to charges of securities fraud and obstructing the SEC’s investigation. On September 7, 2018, Kenneth Stromsland,

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MicroCap CEO Sentenced To 9 Months In Prison for Stock Manipulation Scheme

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On Tuesday, the CEO of a microcap company that claimed to own valuable patented drug delivery technology was sentenced in federal court in Boston in connection with a scheme to manipulate the market for his company’s publicly traded stock. Learned Jeremiah Hand, 59, of Durham, N.C., was sentenced by U.S. District Court Chief Judge Patti B. Saris to nine months

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SEC Charges Repeat Offender in MicroCap Stock Manipulation Scheme

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Last week, the Securities and Exchange Commission charged Howard M. Appel with manipulating the stocks of three microcap companies while on supervised release following his criminal conviction for a prior securities fraud. According to the SEC’s complaint, Appel orchestrated multiple schemes to manipulate the market for trading in shares of Virtual Piggy Inc., (VPIG), Red Mountain Resources Inc. (RDMP), and

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SEC Files Charges in International MicroCap Manipulation Scheme

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This week, the Securities and Exchange Commission charged four individuals for their roles in a fraudulent scheme that generated nearly $34 million from unlawful stock sales and caused significant harm to retail investors. According to the SEC’s complaint, the defendants manipulated the market for and illegally sold the stock of microcap issuer Biozoom Inc. As part of the alleged scheme,

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Broker-Dealer Charged In OTC Shell Factory Scheme

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On Thursday, the U.S. Attorney’s Office for the Southern District of Florida announced that a securities broker-dealer has been charged with participating in a conspiracy to unlawfully sell unregistered securities. This conduct was part of a scheme to sell shares of fraudulently registered companies that could then be used for pump and dump and other stock manipulation schemes. Delaney Equity

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SEC Charges U.K. Brokerage Firm and Others for Manipulative Trading in U.S. MicroCap Stocks

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On Friday, the Securities and Exchange Commission announced securities fraud charges against a U.K.-based broker-dealer and its investment manager in connection with manipulative trading in the securities of HD View 360 Inc. (OTC: HDVW), a U.S.-based microcap issuer. The SEC further announced the institution of an order suspending trading in the securities of HD View. The SEC also announced charges against

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Court Enters Consent Judgment In Penny Stock Manipulation Case

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Yesterday, the SEC announced that the U.S. District Court for the District of Delaware entered a consent judgment in a penny stock manipulation case brought by the SEC against Richard A. Bailey, a former officer of GH3 International, Inc. The SEC’s complaint alleges that Bailey participated in a pump-and-dump scheme involving GH3’s common stock, generating more than $700,000 of illicit

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Former Stock Broker Sentenced for Microcap Stock Manipulation Scheme

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Last week, a former New Hampshire stockbroker was sentenced for his role in a market manipulation scheme which was actually part of an undercover operation. Robert Raffa, 57, of Penacook, N.H., was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison and two years of supervised release. In September 2017, he pleaded guilty to one

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Underwriting Stock and the Art of Legal Stock Price Manipulation [Guest Post]

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Guest Post By: Irwin Stein, Esq.  There is a synergy in the stockbrokerage world upon which few people focus but without which the entire system of that capital formation as we know it might suffer. When a stockbrokerage firm sells its customers shares in an IPO both the firm and the customers want the same thing; they want the shares to

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SEC Charges Canadian Stock Promoter With MicroCap Market Manipulation

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Last Friday, the SEC announced fraud charges against a Canadian man behind an alleged scheme to manipulate the shares of a penny stock. The SEC’s complaint alleges that Micheal A. Skerry, of New Westminster, British Columbia, Canada, illegally profited by manipulating the price and demand of Success Holding Group International, Inc. (OTC: SHGT), a penny stock whose securities were quoted on

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