Anthony Thompson, Jay Fung, and Eric Van Nguyen Charged with Allegedly Inflating Pump-and-Dump Scams
The Securities and Exchange Commission today charged three penny stock cheerleaders with conducting pump-and-dump schemes involving stocks they were lauding in their purportedly independent newsletters, according to SEC documents.
The SEC alleges that Anthony Thompson, Jay Fung, and Eric Van Nguyen worked in a disciplined and organized manner in order to seize control of large portions of shares in the stock of microcap companies and then proceeded to enthusiastically promulgate said stocks in newsletters they distributed to prospective investors.
After creating inflated demand for the stock and increasing the value, or pumping the stock, they sold their holdings at the higher prices, or dumping the stock, and earned momentous profits, the SEC notes. The SEC further reports that after ditching their promotional efforts, the demand for the stocks logically dwindled, prices plummeted, and investors were left holding the bag, a bag with significant losses.
Said newsletters published by the enterprising trio allegedly made misleadingly statements that they “may” or “might” sell shares they owned when in reality, their intentions were always to sell the stocks they were promoting, according to the SEC’s complaint filed in federal court in Manhattan. In the real world, the SEC documents continue, in some instances they already were selling the stocks to which they were saying “may” or “might” sell.
Finally, Thompson, Fung, and Van Nguyen also failed to fully disclose in their newsletters the proper amounts of compensation they were receiving for promoting the stocks, the SEC notes, shrouding the fact that they were actually in cahoots to execute the oldest scam on Wall St.
Investment Rights Lawyers Investigating
The Peiffer Wolf Carr & Kane investment rights lawyers often represent investors who lose money as a result of pump-and-dump schemes or investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment misconduct may contact the investment rights lawyers at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.