Youth Accused For Scamming Brokerage Accounts

On 25 January 2007, Aleksey Kamardin - a youth aged 21 was accused by the SEC (Securities & Exchange Commission) for intruding a number of online brokerage accounts, and then liquidating their portfolios for funding a 'pump & dump' stock scam.

The online brokerage accounts of unsuspecting investors were annexed by Aleksey Kamardin or others who acted in the concert during the period of 13 July & 25 August. The existing securities were sold. The hoaxers used the consequential proceeds, which were still held in their accounts, for buying sparsely traded stocks. They did so to gain profits by pumping the prices of stocks up, notified SEC.

In 17 cases Kamardin, through his individual account, acquired the shares in the sparsely traded issuer right ahead of or concurrently when the compromised trading accounts were being made to acquire shares, creating false manifestation of the market activity, the commission disclosed.

As soon as the intrusion was accomplished successfully, he sold all shares at inflated prices. Except three, in all other instances he realized $82,960 in profit from the trading and netting he did.

Forbes published an Associated Press on 25 January 2007, in which John Stark - Chief of the Internet enforcement office of SEC - is quoted saying, "In this new & emerging hoax, contemporary hacking & identity theft is combined with traditional 'pump & dump' scheme. Where historically legions of swindlers were required and days & sometimes weeks were spent to plan and execute a hoax, today the trick can be done by a small group of people or even single handedly in a matter of few minutes."

According to SEC, Kamardin had a Tampa, Fla, based address. He wired his crooked gains to his Russian born roommate's account. His roommate without delay transferred the funds to a Riga, Latvia bank.

Kamardin has most probably found a refuge in Russia. However, SEC has lodged a complaint with the US District Court, Middle District, Florida.

Related article: Youth’s Bank Account Used in Transferring Phished Funds

» SPAMfighter News - 1/31/2007