SEC Charges Stock Promoters with Market Manipulation
SEC Release No. LR-21902
March 28, 2011
The SEC announced the filing of a civil injunctive action against two individuals for allegedly engaging in a fraudulent broker bribery scheme intended to manipulate the price of a security. The complaint alleges that the defendants entered into kickback arrangements with registered representatives of wealthy customers in exchange for their agreement to purchase the particular stock. In addition, the complaint alleges that the defendants entered into "matched trades" in the relevant stock.
Cross References
Securities Act § 17(a)
Exchange Act §§ 9(a)(1) and 10(b)
Exchange Act Rule 10b-5