Joseph Taub and Elazar Shmalo – Trading Fraud

investment fraud attorney ClevelandJoseph Taub and Elazar Shmalo, 2 New Jersey Traders, Allegedly Engaged in a $26 Million Trading Scam

Joseph Taub and Elazar Shmalo, of New Jersey, allegedly took part in a $26 million trading scam when by involving multiple accounts at various brokerage houses in order to artificially manipulate stock prices, according to Documents from the SEC.

Joseph Taub and Elazar Shmalo allegedly finagled 23,000 trades, just in 2014 and 2015 alone, by purportedly selling identically lightly traded stocks at the same time on the same day, said SEC reports note.

Joseph Taub and Elazar Shmalo Allegedly Controlled up to 80% of the Volume of Their Intended Stock and Made Trades in Several Different Accounts at the Same Time

Joseph Taub and Elazar Shmalo allegedly made subtle so-called “trade manipulations” when they traded the same stock in several different accounts at the same time, according to the aforementioned SEC Documents.

Taub and Shmalo also allegedly controlled a minimum of 80% of the trading volume in the targeted stocks, the SEC reports.

The SEC did not identify the stocks, but only stated that they trade on the NASDAQ or NYSE, the SEC reports.

Furthermore, the SEC also purportedly filed a civil-fraud lawsuit while the FBI issued a Complaint with conspiracy to commit securities fraud, according to reports from New Jersey.

The Peiffer Rosca Wolf Securities Lawyers Often Assist Investors

The Peiffer Rosca Wolf securities lawyers assist investors who lose money as a result of unsuitable trading. 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 unsuitable trading schemes are encouraged to contact the securities lawyers at Peiffer Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520 or via e-mail at arosca@prwlegal.com or jbooker@prwlegal.com.

Alan Rosca (1206 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.