Then they used a second account (referred to as winner account) to sell or purchase larger quantities of the stock at prices affected by the manipulative orders placed through the helper accounts.
Furthermore, the SEC also accused the defendants of engaging in other deceptive conducts to avoid detection of their market manipulation scheme.
In a statement, Joseph G. Sansone, Chief of the Market Abuse Unit of the SEC, commented, “We allege that defendants engaged in an extensive manipulation scheme and went to great lengths to evade detection, placing trades in over one hundred separate accounts at several different brokerage firms and submitting falsified documents to open new accounts in the names of others.”
“Despite their efforts, the SEC staff was able to uncover the connections between these seemingly unrelated accounts and expose the defendants’ coordinated pattern of illicit trading,” added Sansone.
The SEC is requesting the court to issue a temporary restraining order against the accused Chinese traders from further violating federal securities laws. It is also requesting a court order for an immediate accounting, repatriation, expedited discovery and evidence preservation to facilitate a prompt resolution of the case.”
