High-Tech Pump-and-Dump Schemer Sentenced To 71 Months

Law360, New York (May 13, 2013, 8:30 PM EDT) -- A Texas man on Monday was sentenced in a New Jersey federal court to 71 months in prison for his role in a securities fraud scheme that used virus-controlled computers to artificially inflate the prices of penny stocks using spam emails.

Christopher Rad was convicted in December of organizing a pump-and-dump scheme that utilized networks of hacked computers, called “botnets,” to send spam emails to inflate the prices of nearly 40 penny stocks before selling them off, according to a statement from U.S. Attorney Paul J....
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