Stock Manipulator Snagged in FBI Sting
The SEC has initiated suit against the principal of a micro-cap company for engaging in a matched-trade scheme uncovered in an FBI sting operation. The SEC charges that the defendant sought to prop up the value of his publicly-traded real estate company by arranging purchases in an inflated matched trading scheme. The defendant thought he had agreed to pay $1000 for a test transaction to a person to arrange matched trades with a “nationwide network of corrupt brokers.” However, the person receiving the money was a corroborating witness working with the FBI. The defendant then initiated the test transaction with the FBI on the other side of the trade. The SEC has charged the defendant with securities fraud.
OUR TAKE: The Feds are watching. Nobody should ever engage in unlawful conduct on the hope/prayer/thought that he/she won’t get caught. That’s exactly how you end up in prison.