In 2012 we 1st took a look at the SEC enforcement action against AutoChina International for market manipulation. Roughly two (2) years later, the SEC has obtained its first judgments against the company and its principal executive officer in this case.
Tag: washed trade
The SEC defines a “washed trade” as trades where there is no change in beneficial ownership. Essentially when you sort through the accounts the same person either owns the accounts, or the companies behind the accounts, or provided the money to the front people whose names the accounts are in. The SEC views the practice of engaging in washed trades as a form of market manipulation that is prohibited by the Exchange Act of 1934.
Market Manipulation and “Noneconomical Trading”
Coral Capital Partners looks at a SEC Enforcement Action for market manipulation and non-economical trading. This is an extremely interesting look at the manipulation of the public market for a micro-cap company’s common stock, how it was accomplished, and the penalties imposed. We also look at the SEC ‘s definition of these types of market manipulation and where they run afoul of the Exchange Act of 1934. This blog and the associated SEC Litigation Release and Complaint filed in Federal Court provide a very interesting read.