History repeats itself.
In the booming 1920s, before regulation imposed by the New Deal, scamsters would literally form public corporations, go public and sell shares, based on fictitious businesses. Stock manipulators like Joe Kennedy would reap fortunes at a clip by selling shares after the public securities price of the shares was run up.. There were “pools” in which investors conspired to perpetrate this kind of fraud. A notable scam of the 1920s was the “Radio Pool,” in which crooked Wall Streeters would drive up RCA (the leading stock of the booming 1920s) stock, unload their shares for huge profits, then leave unwary investors with collapsed prices for RCA.
Now, even after 85 years of regulation by the SEC, it happened again.