The SEC Brings Fraud Charges Against 13 Individuals For a $14 Million Pump-and-Dump Scheme

Posted on July 17th, 2017 at 1:21 PM
The SEC Brings Fraud Charges Against 13 Individuals For a $14 Million Pump-and-Dump Scheme

From the Desk of Jim Eccleston at Eccleston Law LLC:

The SEC has brought fraud charges in federal district court in Brooklyn against 13 individuals, many of them former brokers, for their involvement in Long Island-based scams. According to the SEC, the individuals used boiler-room-style call centers to make hundreds of thousands of cold calls, relying on high-pressure and deceitful sales tactics to sell penny stocks.

Moreover, the boiler rooms fraudulently promoted at least four microcap securities, often making material misstatements about the investments to investors, who were frequently elderly and unsophisticated, to "pump" up the securities' price and then sell their own shares at artificially high prices to reap profits.

The alleged pump and dump scheme generated approximately $14 million in illegal gains for the defendants. The SEC's complaint charges all defendants with fraud and nine defendants with market manipulation.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & ArbitrationStrategic Consulting ServicesRegulatory  MattersTransition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Jim Eccleston, Eccleston Law, Eccleston Law LLC, Eccleston, SEC

Return to Archive



I just wanted to say thanks again for preparing and executing my case in such a professional manner. It was a pleasure to watch two professionals take such pride in their work, as well as becoming personally in tune with your client (Me). I would personally recommend you and your firm to anyone.

John O.


June 27, 2022
SEC Investigates A.G. Morgan Financial Advisors and Others For Selling Unregistered Securities

The Securities and Exchange Commission (SEC) is investigating Vincent Camarda, James McArthur, and A.G. Morgan Financial Advisors.

June 24, 2022
SEC Charges Advisors and Their Firm With Reg BI Violations Over Sales of GWG L Bonds

The Securities and Exchange Commission (SEC) has charged Western International Securities and five of its advisors with violating Regulation Best Interest (Reg BI) when they recommended and sold high-risk debt securities known as L Bonds to retirees and other retail investors.

June 23, 2022
Former Credit Suisse Advisor Prevails in Deferred Compensation Claim

A former Credit Suisse advisor has prevailed on a $2.2 million arbitration claim after alleging that the firm improperly withheld his deferred compensation when it discontinued its U.S. brokerage business in 2015.