BROWSE BY TOPIC
Stories of Interest
- Goldman's Lloyd Blankfein Seems to be Making a Habit Out of Trolling Trump
- Goldman on Hunt for Star Traders to Revive Struggling Commodities Unit
- Yahoo Owes Millions for Busting NCAA Tourney Bracket Deal
- JPMorgan Joins 21st Century Fox in Fighting 'Deep Divisions Across Our Country'
- Please, God, Save Gary Cohn From Himself: The Case for Resigning
- Regulatory Considerations When Bringing on a New Advisor
- Why Deutsche Bank is at Mercy of Regulators
- U.S. Treasury Auction Class-Action – Federal Judge Causes Interminable Delay
- Mnuchin Rejects Calls to Resign and Defends Trump
- Best Time to Go to the U.S. (Tennis) Open Tourney - Before It Starts on August 28
- Stifel Prevails in Arbitration But Ex-Hilltop Employees Hit with Awards - Bill Singer
- Banca IMI Securities to Pay $35Mn for Improper Handling of ADRs in Continuing SEC Crackdown
- Members of White House ‘Arts Panel’ Resign En Masse in Protest of Trump
- FINRA Whiffs on Disciplinary Sanction: Bill Singer's 'Negligent Market Manipulation in OTC Stock Promotion'
- Heather Heyer’s Mother Says, ‘I’m Not Talking to the President’
- Goldman Sachs May Have Lost $100Mn on Energy Bet Gone Wrong
- SEC Drops Case Against Ex-JPMorgan Traders Over 'London Whale'
- Financial Advisers That Invest in Technology Need to Accomplish These Two Things
- FINRA Amends Codes Regarding Expedited Arbitrator List Selection
- FINRA July 2017 Quarterly Disciplinary Review (Podcast)
We seek to provide information, insights and direction that may enable the Financial Community to effectively and efficiently operate in a regulatory risk-free environment by curating content from all over the web.
Stay Informed with the latest fanancialish news.
NEWSLETTERS & ALERTS
MAY THE FORCE(FIELD) BE WITH YOU! Trader Gets 15 Months for Pump-n-Dump Scheme
Herschel Knippa, the owner and head trader of Dallas-based Kenai Capital Management, was sentenced to 15 months in prison and ordered to pay $3.6 million in restitution, for his part in a pump-n-dump investment scheme that led to $131 million in investor losses. Knippa, 47, pleaded guilty in February.
Knippa was one of 9 individuals - including stock promoters, brokers and investor relations officials - who were accused last May of defrauding investors into buying ForceField Energy, an LED lighting company. From 2009 until April 2015, the defendants manipulated the stock by secretly trading it in undisclosed accounts, inflating trading volume to create a false sense of demand, and concealing kickbacks to stock promoters and brokers to tout it.
According to court papers, Knippa solicited more than $1.2 million in ForceField private placements from at least 10 investors, and with other conspirators tried to hide the scheme by using disposable cellphones and using cash for kickbacks. He also touted the now-essentially worthless stock on television without revealing his receipt of kickbacks.
Perhaps Knippa's 'tour de force' came during an appearance on Fox Business' "Varney & Co," when he lied to host Stuart Varney in response to the question if he owned ForceField: "You bet I do. I put my money where my mouth is."
In addition to Knippa, 4 other defendants - an IR professional and 3 brokers - have been sentenced, receiving prison sentences ranging from 3 months to 3 years.
May the FORCE(FIELD) BE WITH YOU!!!