SEC Accuses Chinese Auto Firm Of Stock Market Manipulation

Law360, New York (April 11, 2012, 10:36 PM EDT) -- The U.S. Securities and Exchange Commission on Wednesday accused a Chinese commercial vehicle company of engaging in a manipulative scheme to create the illusion of an active market in the company's stock in order to obtain much-needed financing.

The civil suit — filed against AutoChina International Ltd. and 11 investors, including a senior executive and director at the company — alleges AutoChina and its investors dumped more than $60 million into 26 dummy E-Trade Financial Corp. accounts over four months to boost the average daily trading...
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