New York Stock-Broker Accused of Playing Pump-And-Dump Stock Fraud
Gregg Berger, 47, a stock-broker in NY, was recently accused of conspiring to sell stocks touted via innumerable spam mails, which apparently utilized the notorious stock scam of pump-and-dump kind. Online.wsj.com reported this on February 1, 2011.
It may be noted that pump-and-dump stock scams deal with manipulating a particular share's/stock's volume and price. Fake and deceptive bulk electronic mails are characteristically utilized for promoting the share/stock as also entice people towards purchasing it. The process consequently, elevates the stock's value following which the perpetrators "dump" their collection of stocks alternatively sell them off at prices that had been artificially exaggerated.
Investigation into Berger's case reveals that Berger allegedly joined spammer Alan Ralsky along with 3 other miscreants to connive for dispatching innumerable spam mails in an act of manipulating with thinly-traded shares. Once people receiving the spam mails purchased the stock that the criminals touted, thus resulting in the share value to inflate, Berger and his associates made extra income via dumping their stocks or selling them at the exaggerated value, Court indictment indicates.
Moreover, with the scam getting executed during January 2005-December 2007, Berger allegedly caused 30m shares to be sold enabling his co-conspirators to earn about $30m and himself to keep over $600,000 in fee.
Reportedly, the shares, which the conspirators "dumped," belonged to companies namely Pingchuan Pharmaceutical, China World Trade Corp., Worldwide Biotech and Pharmaceutical Co., m-Wise, China Mobility Solutions and China Digital Media Corp, the indictment outlines.
Remarking about the incident, Lanny Breuer Assistant AG stated that because of pump-and-dump scams, the stock markets' integrity was undermined. He added that stock dealers, who took advantage of their trustworthy status, for making personal gains monetarily at innocent investors' detriment just like Mr. Berger was accused of performing would be vigorously pursued. Online.wsj.com published this.
Conclusively, Berger has been legally accused of conspiring for wire-fraud and securities-fraud. He may also have to forfeit all expenses accruing from his crime. If proved guilty, he'll get prison for up to 25-years and would require paying $250,000 in fine. Berger reportedly, will be prosecuted in Detroit (US) District Court on February 8, 2011.
Related article: New Zealand Releases Code To Reduce Spam
» SPAMfighter News - 07-02-2011
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