Big news among day traders is company share-boosting (Pump & Dump, False Promotion, Media News Hype, etc..). What does all this mean? Well for day traders it means quick profits and big money if they get in on the ride. But for the companies and promoters it can mean a temporary vacation at club fed. The Chairman of an Arizona company
whose name we will not disclose recently was accused of paying mob-linked stock-promoters to boost his company's stock. He was
and was convicted of racketeering charges. The verdict came against the Chairman and Chief Executive Officer of a well-known
health technologies company and a very well known brokerage firm. This was the largest case to ever involve
members of organized crime in manipulating the stock market.
The convicted Chairman of this company was accused of arranging to pay off stock promoters who then bribed stockbrokers to drive up the value of his company's stock by aggressively promoting it to their customers.
The defendants lawyer, told the jury his client was victimized by mob-tainted promoters he met in December 1996.
and the promoters never told his client they had mob ties when he signed a consulting agreement with them to promote his company stock.
Prosecutors relied in part on the results of court-ordered tape recordings of conversations to the stock promoters. Oops! Well its off to the races for me folks, I have a pony to bet on! -Cool Ray