SEC Snares Pump & Dump Schemers
Federal Securities regulators this week launched their fourth Internet fraud sweep and snared a mechanic and chauffeur among others operating alleged "pump & dump" schemes.The SEC filed 15 enforcement actions against 33 companies and individuals who allegedly used the Internet to manipulate stock prices.
The accused spread false information about small publicly traded companies known as microcaps through Web sites, electronic newsletters, e-mails and message boards in an attempt to bump up the companies stock. When the stock was high they then dumped it for a profit.
