Nine Individuals Indicted For Orchestrating A $131 Million Market Manipulation Scheme [View all]

[nitpicker]

Department of Justice
U.S. Attorney’s Office
Eastern District of New York

FOR IMMEDIATE RELEASE
https://www.justice.gov/usao-edny/pr/nine-individuals-including-five-registered-brokers-indicted-orchestrating-131-million

Tuesday, May 3, 2016

Nine Individuals, Including Five Registered Brokers, Indicted For Orchestrating A $131 Million Market Manipulation Scheme

Defendants Allegedly Profited by Selling to Investors Worthless Stock of a Company That Purported to be a Worldwide Distributor and Provider of LED Lighting Products and Solutions
(snip)

As alleged in the indictment and other court filings, between December 2009 and April 2015, the defendants, together with others, engaged in a scheme to defraud investors in ForceField, a purported worldwide distributor and provider of LED lighting products and solutions, by artificially controlling the price and volume of traded shares of ForceField through, among other means: (1) using nominees to purchase and sell ForceField stock without disclosing this information to investors and potential investors; (2) orchestrating the trading of ForceField stock to create the appearance of genuine trading volume and interest in the stock; and (3) concealing payments to stock promoters and broker dealers who promoted and sold ForceField stock to investors and potential investors while claiming to be independent of the company. The defendants’ fraudulent scheme caused a loss of approximately $131 million to the investing public.
(snip)