Deitsch is so ignorant of the Securities Laws he was doing wash trades and it seems you didn't read the Complaint the SEC filed or you would have known that Deitsch was doing wash trades with his stock ergo he was selling his stock and back at a higher price - securities fraud.
"On the call, Broker B’s representative told Deitsch that his trading appeared to be manipulative:
[The] home office…got in touch with me…. They said that the way you’re
trading, 100 shares of a low-priced security and paying the commission you are, it looks to the regulators like you might be manipulating or moving the price of the stock and they kind of wanted me to find out why you’re making the 100-share transactions of a very low price security.
205. Making it clear that he had traded for the purpose of moving Nutra Pharma’s stock price up (purportedly to prevent short sellers from lowering the stock price), Deitsch replied:
The market makers have a shorting algorithm and they walk a stock down….
If someone right now bought [the stock] up to 13.2, …they would raise the ask—it would push the algorithm up, ok, so they’d stop shorting the stock. If no one does, if there’s weak volume, what they do is keep lowering the ask and they crush the stock….. So if you do nothing else but tickle the ask with 100 shares, 200 shares, they go away. I have market makers that do that for me, and every once in a while I do it myself. (Deitsch is admitting he is manipulating the price - the SEC will ask for proof of the names of the MMs who are committing fraud for Deitsch).
206. The representative told Deitsch that “the way our regulators view it, it looks like you’re trying to manipulate or stabilize the price of the stock.”
207. The representative then told Deitsch that she would pass his explanation along to Broker B’s home office and that “they could, in effect, close the account down.”
Deitsch is such a clown that he is always talking about the MMs shorting and they have an algorithm for doing it and he says he does it himself.
So it is far worse than just selling his stock he attempting to manipulate the price.
IG
The First Casualty of Emotion is Reason.
