SEC Halts Trading In 61 Companies In Fraud Crackdown

Law360, New York (June 3, 2013, 11:59 AM EDT) -- The U.S. Securities and Exchange Commission on Monday suspended trading in 61 dormant shell companies whose stocks were ripe for use in fraud schemes, marking the second-largest suspension in agency history.

The SEC said an analysis by its Microcap Fraud Working Group found that the companies were delinquent in their public filings and appeared to no longer be in business, raising the risk that their securities could be used in pump-and-dump schemes.

In a pump-and-dump scheme, fraudsters will purchase shares of a thinly traded company, tout...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.