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The Atlanta Regional Office of the Securities and Exchange Commission has filed fraud actions against two Southeastern companies, alleging that they engaged in "pump-and-dump" schemes in which companies distribute bogus information to pump up share prices, only to dump the stock and leave investors with huge losses. Katherine Addleman, the SEC's regional director, said the number of pump-and-dump schemes her 35- to 40-lawyer office sees doesn't seem to be affected by the economy. In fiscal year 2007, the most recent year for which data are available, Addleman said about 5 percent of the cases brought by the SEC's national enforcement program involved these schemes.
July 28, 2008 at 05:05 AM
1 minute read
The original version of this story was published on Law.Com
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