SEC Charges 18 Defendants in International Scheme to Manipulate Stocks

Posted on August 30th, 2022 at 11:34 AM
SEC Charges 18 Defendants in International Scheme to Manipulate Stocks

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged eighteen individual and entity defendants for their roles in orchestrating a scheme in which numerous online retail brokerage accounts were hacked and fraudulently used to buy microcap equities in an effort to manipulate stock prices and trading volumes.

One of the eighteen defendants, Rohim Mohamed of Alberta, Canada, allegedly coordinated the fraudulent scheme, according to the SEC. The SEC alleged that perpetrators hacked at least 31 U.S. retail broker accounts in early 2018 and purchased securities of Lotus Bio-Technology Development Corp, and Good Gaming, Inc.

The unauthorized stock purchases allegedly enabled some perpetrators, who already owned large blocks of Lotus Bio-Tech and Good Gaming stock, to sell their shares at artificially high prices and collect nearly $1 million in ill-gained proceeds. Davies Wong of Canada and Glenn Laken of Illinois, controlled the majority of Lotus Bio-Tech and Good Gaming stock that was sold during the relevant period, according to the SEC. While the investigation continues, the SEC is seeking disgorgement plus interest, penalties, bars, and other equitable relief.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

March 13, 2025
Congress Considers Expanding the Accredited Investor Definition

A recent congressional hearing examined potential reforms to the accredited investor definition, a critical threshold determining who can participate in private market investments.

March 12, 2025
GPB Capital Investors May Receive Some Compensation Under Proposed Distribution Plan

GPB Capital Holdings investors have not received returns on their investments since 2018. According to InvestmentNews, after years of litigation, a court-appointed receiver has submitted a plan to return funds to the 17,000 investors who purchased $1.8 billion in GPB limited partnerships.

March 11, 2025
Former CNBC Analyst Pleads Guilty to $2.7 Million Securities Fraud Scheme

James Arthur McDonald Jr., a former financial advisor and frequent CNBC guest analyst, has agreed to plead guilty to securities fraud, admitting to defrauding investors out of at least $2.7 million, as reported by ThinkAdvisor. The felony charge carries a maximum sentence of 20 years in federal prison.