Download Jim Carroll in BizWest on the Winners and Losers in Stock

Jim Carroll in BizWest on the Winners and Losers in Stock
Manipulation Schemes
(16-December-2014) - Data security firm Ecrypt Technologies saw its stock price fluctuate dramatically in December 2014
as the result of stock pump-and-dump scheme to drive up the company's share prices. Stock pump-and-dump schemes
usually involve those behind them making false or exaggerated claims about stocks to drive up trading and share price.
When the stock has risen, the perpetrators dump their shares for a major profit before the share price drops back down
and leaves other investors suffering the consequences. Ecrypt Technologies has publicly stated that they had no part of the
scheme.
Faegre Baker Daniels partner Jim Carroll has extensive experience representing issuers and underwriters in public offerings
of debt and equity securities, including numerous IPOs. Carroll told BizWest that anyone who owns stock in a company
could try such a scheme to boost stock prices, but that any manipulation from insiders would be considered illegal. He
noted that regulatory agencies have been successful in determining fraud when insiders are involved.
Penalties for facilitators of pump-and-dump schemes can range from civil to criminal to administrative. Companies that are
innocent victims of such schemes can find themselves in hot water. "It could be kind of a black eye that sticks to the
company even if the company didn't have anything to do with it," Carroll said.
Jim Carroll in BizWest on the Winners and Losers in
Stock Manipulation Schemes
Media Mention
Page 1