Additionally, the SEC alleged that the defendant omitted the fact that he already owned substantial shares in Arrayit stock and he actually intended to dump his stockholding despite promoting it to the public.
Furthermore, the Commission alleged that Nielsen used a deceptive technique known as “spoofing.” The technique involves placing and subsequently canceling large orders of a certain stock to give the false appearance of high demand for the security.
According to the SEC, Nielsen’s false and misleading assertions and spoofing helped increase Arrayit’s stock price. He then sold his shares in the biotechnology company at the artificially-inflated price and made a substantial profit.
In a statement, SEC San Francisco Regional Office Director Erin Schneider said, “We allege that Nielsen engaged in multiple forms of deception to exploit investors amidst the COVID-19 pandemic. Investors should be aware of the potential for stock manipulation, including through claims regarding products or services related to COVID-19.”
