SEC Bans Hosting Stock Trading Webcast on Pump-and-Dump System


What would you like to know

  • The SEC has accepted the former broker’s settlement offer and is now preparing to exclude him from the industry.
  • The ex-broker also pleaded guilty to conspiracy to commit wire and securities fraud as part of a plea deal in a separate DOJ action.
  • He was accused of spreading or marketing false rumors, generating more than $ 374,000 in illicit profits.

The Securities and Exchange Commission has now banned the host of a stock trading webcast it previously accused of securities fraud, alleging it spread more than 100 false rumors about public companies in order to generate illicit profits under a pump and two years. -dump diagram.

Since the SEC charged the former broker Mark Melnick, 41, of Marlboro, New Jersey, was issued a consent judgment against him on Nov. 5, permanently banning him from future securities violations, he said.

In anticipation of these proceedings, Melnick submitted a settlement offer that the SEC said it decided to accept.

In an order instituting administrative proceedings filed Thursday, the SEC said that following Melnick’s actions, it is “appropriate and in the public interest to impose the penalties agreed” in Melnick’s offer.

The SEC therefore ordered that Melnick be banned from association with any nationally recognized broker, dealer, investment advisor, stockbroker, city councilor, transfer agent or statistical rating agency. The SEC also banned him from participating in any penny stock offerings.

“Any new request for association by the Respondent will be subject to the applicable laws and regulations governing the reinstatement process, and reinstatement may be conditional on a number of factors,” including, but not limited to, funds that he must return to his victims, the SEC said.

Ex-broker spread false stock rumors

According to the SEC’s initial complaint, filed Sept. 30 in the Northern Georgia District of Atlanta, Melnick was told in advance of companies that another program participant planned to spread false rumors about, and then shared the names of those businesses with subscribers to his online business. room.

Melnick is said to have told subscribers that he took positions in the companies he was trying to push stocks for, while other participants in the program also spread false rumors through real-time financial news services, forums. discussion boards and bulletin boards. False rumors have temporarily pushed up the prices of company securities, according to the SEC.

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