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- SEC's Opening Remarks to the Elder Justice Coordinating Council
- Massachusetts Jury Convicts CA Attorney of Securities Fraud
- Deutsche Bank Says 3 Senior Investment Bankers to Leave Firm
- World’s Biggest Hedge Fund Reportedly ‘Bearish On Financial Assets’
- SEC Fines Constant Contact, Popular Email Marketer, for Overstating Subscriber Numbers
- SocGen Agrees to Pay $1.3 Billion to End Libya, Libor Probes
- Cryptocurrency Exchange Bitfinex Briefly Halts Trading After Cyber Attack
- SEC Names Valerie Szczepanik Senior Advisor for Digital Assets and Innovation
- SEC Modernizes Delivery of Fund Reports, Seeks Public Feedback on Improving Fund Disclosure
- NYSE Says SEC Plan to Limit Exchange Rebates Would Hurt Investors
- Deutsche Bank faces another challenge with Fed stress test
- Former JPMorgan Broker Files racial discrimination suit against company
- $3.3Mn Winning Bid for Lunch with Warren Buffett
- Julie Erhardt is SEC's New Acting Chief Risk Officer
- Chyhe Becker is SEC's New Acting Chief Economist, Acting Director of Economic and Risk Analysis Division
- Getting a Handle on Virtual Currencies - FINRA
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NEWSLETTERS & ALERTS
Pair Manipulates Fitbit Stock Through Fake Tender Offer
by Howard Haykin
The SEC filed fraud charges against a 30-something senior marine engineer from Virginia Beach, VA, in connection with a scheme to manipulate the price of Fitbit securities through false regulatory filings.
SEC FINDINGS. The individual purchased Fitbit call options just minutes before he and a co-conspirator filed a fake tender offer on the SEC's EDGAR system purporting to acquire Fitbit's shares at a substantial premium.
Last year, the SEC charged the co-conspirator – a 25-year old mechanical engineer, also from Virginia Beach, VA - and he recently was sentenced to prison in a parallel criminal case.
The false tender offer was filed on November 9, 2016, in the name of ABM Capital LTD, a nonexistent company for which the defendants created an EDGAR account. The defendant employed several deceptive techniques to conceal his identity and true location, including using someone else's name to create an email account and disguising the internet protocol ("IP") address used to obtain EDGAR filing credentials and make the false filing to conduct the scheme. In preparation for the scheme, the co-conspirators researched 2 prior EDGAR manipulation cases filed by the Commission.
The tender offer became publicly available one day later, on November 10, 2016, and within 15 minutes the defendant sold all of his options - reaping a 350% profit of $13,008.
[For further details, click on … SEC Complaint]