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

TESTIMONIALS

Previous
Next

This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.

LATEST NEWS AND ARTICLES

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.

October 22, 2021
TIAA Sues Former Advisors For Allegedly Soliciting Clients

Teachers Insurance and Annuity Association of America (TIAA) filed suit against three of its former Connecticut advisors for allegedly soliciting TIAA clients to join them at their new firm.