Gregg M. Berger, an ex-Gilford Securities broker, has been indicted for conspiracy over his alleged involvement in a global pump and dump stock fraud scheme involving thinly traded Israeli and Chinese securities. He is charged with wire fraud and securities fraud. The SEC has also filed related civil securities fraud charges against Berger, a number of other individuals, and three companies. The commission is seeking permanent injunctions, civil penalties, disgorgement, and a penny stock bar against Berger. Federal investors discovered the pump and dump scam following a multi-year probe.
According to prosecutors, between January 2005 and December 2007, Berger allegedly conspired with How Wai Hui, Francis A. Tribble, Scott Bradley, Alan Ralsky, and others to execute a stock scam that resulted in the sale of about 30 million shares of stock. Berger made over $600,000 in commissions and his co-conspirators generated about $30 million.
Defendants are accused of using spam emails to manipulate the thinly traded stocks. The recipients who bought the stock would drive the share price up and that is when Berger and co-conspirators would sell their shares at the new prices.
The indictment says that Berger was the stockbroker for the scam. He set up the brokerage accounts, arranged it so that stocks could be transferred to the accounts, executed the stock trades, transferred proceeds to specific bank accounts, provided confidential account information details to co-conspirators that were not supposed to receive this data, and did not obtain account holders’ consent. Stocks sold in the pump and dump scheme included those from Pingchuan Pharmaceutical Inc., China World Trade Corporation, World Wide Biotech and Pharmaceutical Co., China Digital Media Corporation, m-Wise, and China Mobility Solutions.
Related Web Resources:
SEC v. Berger, United States District Court, E.D. Michigan
More Blog Posts:
Dallas Securities Attorney and Former SEC Litigator Convicted of Fraud in Pump and Dump Stock Scam, Stockbroker Fraud Blog, February 11, 2010
Pump and Dump Scheme Involving Prime Time Stores Inc. Sends Global Spam Levels Up 30%, Stockbroker Fraud Blog, September 5, 2007
“Pump and Dump”, Annuities, Real Estate, Affinity Fraud and “Free Lunch Seminars” Are Top Scams in 2007 Say State Securities Regulators, Stockbroker Fraud Blog, May 21, 2007
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