SEC Charges Eleven in Stock Manipulation Ring

[Keith Maydak]

Is the redacted indictment now available on PACER?

It still doesn't say that the revenues claim is false.

For instance, if I have a shell, I'm going to want something good in it. If I want to expand into the hottest market, I can make such a plan and do so legally. If I have revenues increase 300%, I can say what was said legally even if I'm overly excited.

Now, for the purposes of dumping stock, well that's illegal even if the statements were true as it would have been insider trading and a whole host of other price manipulation issues.

Fraud usually requires a representation, and the representation must be materially false. So, normally they say that, "Defendant XXX issued a press release containing the materially false claim that revenues increased by 300%."