Securities Attorney and Market Manipulation
A California securities attorney finds himself in hot water over his role in schemes to manipulate the stock of two publicly traded microcap companies, Greenway Technology and Crown Marketing. Jehu Hand, the defendant, endures a two week trial for conspiracy, securities fraud and wire fraud. Following the guilty verdict, Hand awaits sentencing.
Regarding the Greenway Technology stock, Hand and his co-conspirators utilize front companies to conceal control over the majority of Greenway’s stock. With this purpose in mind, Hand ensures the company stock is available for public sale. Shortly thereafter, Hand authors and disseminates several false opinion letters to brokerage firms. With millions of shares available, Hand and his co-conspirators hire stock promoters to send blast e-mails to potential investors. The marketing effort positions Greenway as a company on the verge of acquiring hotels catering to gay and lesbian travelers. Unfortunately, however, the company lacks the funds to acquire any such properties. In the end, the false promotional campaign enable Hand and his co-conspirators to sell millions of shares of Greenway stock at artificially inflated prices.
