Here is what happened on December 1, 2017, with FAGI. A group that refers to itself as Team Gucchi on Tweeter began to enter purchases of 10K shares a piece to give the appearance that the stock was moving up in order to induce others to buy in violation of 15 U.S.C 78i:
U.S. Code › Title 15 › Chapter 2B › § 78i
15 U.S. Code § 78i - Manipulation of security prices
(a)Transactions relating to purchase or sale of securityIt shall be unlawful for any person, directly or indirectly, by the use of the mails or any means or instrumentality of interstate commerce, or of any facility of any national securities exchange, or for any member of a national securities exchange—
(1)
For the purpose of creating a false or misleading appearance of active trading in any security other than a government security, or a false or misleading appearance with respect to the market for any such security, (A) to effect any transaction in such security which involves no change in the beneficial ownership thereof, or (B) to enter an order or orders for the purchase of such security with the knowledge that an order or orders of substantially the same size, at substantially the same time, and at substantially the same price, for the sale of any such security, has been or will be entered by or for the same or different parties, or (C) to enter any order or orders for the sale of any such security with the knowledge that an order or orders of substantially the same size, at substantially the same time, and at substantially the same price, for the purchase of such security, has been or will be entered by or for the same or different parties.
(2)
To effect, alone or with 1 or more other persons, a series of transactions in any security registered on a national securities exchange, any security not so registered, or in connection with any security-based swap or security-based swap agreement with respect to such security creating actual or apparent active trading in such security, or raising or depressing the price of such security, for the purpose of inducing the purchase or sale of such security by others.
The stock ran quickly to 50 cents within 20 minutes. Then was sold off to 25 cents. The stock dropped to 9 cents the following week. Those responsible left their footprints on Twitter which I downloaded. I then filed a complaint with David London, an attorney with the SEC the following Monday.
I'm not going to watch this type of illegal activity anymore. It has to be stopped and people need to be indicted.
Hope this answers your question.
Happy Holidays!!!
