“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.
Seventy percent (70%) of the volume of MDDT trading was involved; all accounted for by five (5) superficially unconnected individuals from three (3) Asian countries were set in conspiratorial coordination.
IP address were tracked down to identify the alleged conspirators.
On 20 June 2019, trading in MDDT was suspended. The accused are Kit Mun Chan, Lau Kean Chong, Chong Poui Fan, Binji Lu, and Youn Chien Wong.
The SEC stated: “We took swift action to protect the public from investing based on the artificial liquidity and volume created by this alleged scheme…” … “Notwithstanding that these overseas defendants attempted to mask their locations by using virtual private networks, we were able to halt the misconduct before substantial investor harm occurred.”
The SEC charged the defendants with violating the anti fraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934, and Rule 10b-5 thereunder, and the market manipulation provision of Section 9(a)(1) of the Exchange Act.
Anthony M. Abraham, Esq., PC, has represented investors who have claimed against Broker-Dealers, Bankrupt and other estates for return of assets taken through fraud. Anthony M. Abraham, Esq., PC is experienced in broker fraud, churning and unauthorized trading claims. If you were victimized in this scheme and need help, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.