Pumping And Dumping Is Much Faster When You Can Do Both Yourself With Hacked Accounts
from the much-more-efficient-that-way dept
Two additional interesting things come out of the article. The first is that at least some of the brokerages seemed to catch on to the fraud pretty quickly (though, not quickly enough). In the example case given, Charles Schwab catches onto the fraud less than 10 minutes after one of their accounts is involved, and blocks another transaction. The other interesting point, is that the Washington Post followed up with a CEO at one of the companies whose stock was pumped and dumped. As we've noted in the past, it's often quite a hassle for those companies, but in this particular case, it's now made it very difficult, as the fraud helped blow a business deal, and at least one of the brokerages will no longer let anyone trade that stock. Oh yeah, as for the man being charged by the SEC? He fled the country and no one actually seems to know where he is. The money is also long gone.