The U.S. Securities and Exchange Commission has launched a lawsuit against a Rhode Island-based investment advisor and his company, alleging they orchestrated a $1.4 million pump-and-dump scheme involving BioVie Inc., a purported drugmaker.
In its Friday filing in Manhattan federal court, the SEC accused David Banister, 59, and his company, The Market Analysts Group LLC, of manipulating trading prices for BioVie shares between December 2020 and March 2021. According to the SEC, Banister used his company’s subscription-based stock advisory platform and his popular Stocktwits account to mislead investors.
“Defendants promoted BioVie to investors — encouraging them to buy and hold the stock — while concealing Banister’s plans to sell his own BioVie shares,” the SEC alleged.
Misleading Promotion
The SEC claims Banister misrepresented trading spikes in BioVie’s stock, attributing the increases to market demand without disclosing that his own purchases were driving the price surges. The Market Analysts Group, which boasted Banister as “one of the top market forecasters in the world,” reportedly lured investors into overpaying for BioVie shares.