SEC: Russian Trader Used Stolen Passwords

["Fergie" <fergdawg () netzero net>]

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Via The International Herald Tribune.

[snip]

"Pump and dump" schemes in the stock market are an old way of making money
from gullible investors, but they require persuading the investor to buy an
overpriced stock.

A Russian trader, operating through an Estonian brokerage firm, found a
simpler way to pump and dump stocks, the U.S. Securities and Exchange
Commission said Tuesday.

The commission said the trader, Evgeny Gashichev, who was trading though an
account of Grand Logistic, a Belize corporation based in Estonia, had used
the Internet to steal passwords of account holders at online brokerage
firms, among them E*Trade Securities, TD Ameritrade and Scottrade.

The commission said Gashichev would buy, through his own account, shares in
a thinly traded company. Immediately afterward, he would use the accounts
of victims to buy large amounts of the stock, driving up the price. He
would then sell his shares into that demand. In some cases, he would then
sell the stock short, profiting further when the price declined.

[snip]

More:
http://www.iht.com/articles/2006/12/20/business/pump.php

- - ferg

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--
"Fergie", a.k.a. Paul Ferguson
 Engineering Architecture for the Internet
 fergdawg(at)netzero.net
 ferg's tech blog: http://fergdawg.blogspot.com/


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