US authorities have charged three men with orchestrating a large-scale market manipulation scheme related to two publicly traded companies. The three men, including a father-son duo, are each charged with conspiracy to commit securities fraud, securities fraud, and conspiracy to manipulate securities prices. One of the defendants is additionally charged with manipulation of securities, wire fraud, and money laundering. Two defendants are in custody while one is still at large.
During 2014-22, the defendants, for personal financial gains, manipulated securities prices via a pattern of coordinated trading, which created false impressions of supply and demand. Specifically, the defendants targeted two publicly traded companies – Hometown International Inc. and E-Waste Corp. They schemed to ultimately gain control of Hometown International and E-Waste’s shares and arranged to transfer millions of shares to various nominee entities to conceal their control of the shares.
Through a variety of tactics, the defendants managed to artificially inflate the price of Hometown International and E-Waste’s stock by 939% and 19,900%, respectively.
Source: US Department of Justice
