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    y actual trading in the stock.

    The type of information varies but can be very creative. In one prior case the fraudsters controlled a small US public company and a small UK private company. The two companies enter

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    During the six months ended March 31, 2007 the SEC announced in Litigation Releases the opening of eighty-one new cases. Almost half of the cases were of three types: accounting fraud, insider trading and stock manipulation.

    I defined accounting fraud and insider trading in an article I wrote in 2006, entitled, “FRAUD-WHATS NEW AT THE SEC”. You can access this article at www.ezinearticles.com/?id=327339. I will concentrate on stock manipulation frauds in this article.

    In stock manipulation fraudsters make a profit by buying or selling the targeted stock, already knowing which direction its price will go. A simple example of this is called a “pump and dump scheme”. The fraudster “pumps” the price of the stock by encouraging buying or selling in the stock. This is often done by disseminating information on the Internet or by mass faxes. Sometime it is done by actual trading in the stock.

    The type of information varies but can be very creative. In one prior case the fraudsters controlled a small US public company and a small UK private company. The two companies entere

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    I defined accounting fraud and insider trading in an article I wrote in 2006, entitled, “FRAUD-WHATS NEW AT THE SEC”. You can access this article at www.ezinearticles.com/?id=327339. I will concentrate on stock manipulation frauds in this article.

    In stock manipulation fraudsters make a profit by buying or selling the targeted stock, already knowing which direction its price will go. A simple example of this is called a “pump and dump scheme”. The fraudster “pumps” the price of the stock by encouraging buying or selling in the stock. This is often done by disseminating information on the Internet or by mass faxes. Sometime it is done by actual trading in the stock.

    The type of information varies but can be very creative. In one prior case the fraudsters controlled a small US public company and a small UK private company. The two companies enter

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    k manipulation frauds in this article.

    In stock manipulation fraudsters make a profit by buying or selling the targeted stock, already knowing which direction its price will go. A simple example of this is called a “pump and dump scheme”. The fraudster “pumps” the price of the stock by encouraging buying or selling in the stock. This is often done by disseminating information on the Internet or by mass faxes. Sometime it is done by actual trading in the stock.

    The type of information varies but can be very creative. In one prior case the fraudsters controlled a small US public company and a small UK private company. The two companies enter

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    “pump and dump scheme”. The fraudster “pumps” the price of the stock by encouraging buying or selling in the stock. This is often done by disseminating information on the Internet or by mass faxes. Sometime it is done by actual trading in the stock.

    The type of information varies but can be very creative. In one prior case the fraudsters controlled a small US public company and a small UK private company. The two companies enter

    Web Design
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    y actual trading in the stock.

    The type of information varies but can be very creative. In one prior case the fraudsters controlled a small US public company and a small UK private company. The two companies entered into a merger agreement for an exchange of $600M of debentures. The fair market value of the net worth of each company had a value of less then $2M each. Of course the headline on the Internet was that it was a six hundred million dollar deal. The stock of the US public company increased from pennies to over $10 in a period of weeks and the fraudsters “dumped”. No one found out how much profit they made and there was no prosecution.

    Fraudsters have developed a new way of inflating the price of the stock in pump and dump schemes. By stealing investors' on-line brokerage account information, they can use the investors' accounts to trade the targeted stock. This trading will influence its price in the direction the fraudster wants it to go. They then buy or sell the stock, knowing the price direction. Sometime they will buy on the way up and then sell short, know

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