“Pump and Dump” schemes are not just the subject of episodes of the Sopranos. Nor are they limited to the unregulated 1920’s stock market in the USA commanded by Joe Kennedy. They persist in the here and now, made even more extreme through internationalization of markets, information and trading.
On 20 June 2019 the SEC (Securities and Exchange Commission) published charges against five foreign traders for “matching” trades in Medico International, Inc. (MDDT) to artificially increase the price. Assets were frozen by the Court in the defendant’s brokerage accounts, inclusive of $144,000 slated for wiring offshore, and blocks of MDDT stock.
The SEC complaint stated that on 19 June 2019, traders from China, Singapore, and Malaysia attempted to artificially manipulate the price of MDDT. “Matched” orders to buy and sell MMDT at about the same times, sizes, and prices were implemented. The SEC complaint was filed in the US District Court for the Southern District of New York.