SEC Charges 18 Defendants in International Scheme to Manipulate Stocks

Posted on August 30th, 2022 at 11:34 AM
SEC Charges 18 Defendants in International Scheme to Manipulate Stocks

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged eighteen individual and entity defendants for their roles in orchestrating a scheme in which numerous online retail brokerage accounts were hacked and fraudulently used to buy microcap equities in an effort to manipulate stock prices and trading volumes.

One of the eighteen defendants, Rohim Mohamed of Alberta, Canada, allegedly coordinated the fraudulent scheme, according to the SEC. The SEC alleged that perpetrators hacked at least 31 U.S. retail broker accounts in early 2018 and purchased securities of Lotus Bio-Technology Development Corp, and Good Gaming, Inc.

The unauthorized stock purchases allegedly enabled some perpetrators, who already owned large blocks of Lotus Bio-Tech and Good Gaming stock, to sell their shares at artificially high prices and collect nearly $1 million in ill-gained proceeds. Davies Wong of Canada and Glenn Laken of Illinois, controlled the majority of Lotus Bio-Tech and Good Gaming stock that was sold during the relevant period, according to the SEC. While the investigation continues, the SEC is seeking disgorgement plus interest, penalties, bars, and other equitable relief.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

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