Million profit by manipulating courses: the 42-Year-old stock markets should have investors linked

For the Offense German investigators use the English word "Scalping", which means translated as much as scalp or to someone the fur on the ears as well. cri

Million profit by manipulating courses: the 42-Year-old stock markets should have investors linked

For the Offense German investigators use the English word "Scalping", which means translated as much as scalp or to someone the fur on the ears as well.

criminal activities of Fund managers, business journalists, or even publicly proclaimed "gurus are Meant to be". You buy shares in smaller, largely unknown companies, and sprinkle then in a targeted, positive messages about the securities.

Many investors have followed the fake " buy " recommendations

Many careless investors the fake buy recommendations, the stock price soaring follow – up to the author of the rejoicing arias of their units to sell and high profits to sink in. The mass goal kicks the papers of course rushes to the bottom, the deceived investors recorded massive losses.

Following this pattern, the 42-year-old businessman Peter N. is ripped off between December 2009 and November 2011, many share buyer, and a fortune earned. Since this Tuesday will be held accountable to the native British before the country court in Munich. The public Prosecutor's office accuses him of market manipulation in 22 cases, and ordered for the damages, the confiscation of the value set. Height: 5.9 Million Euros.

Prosecutor: market manipulation in 22 cases

According to the authority, Peter N. is made "intentionally, with a conscious act of Deception and thereby on the domestic exchange or market price of a financial instrument" effect. In its indictment, the prosecution lists several companies with whom the Accused the mesh pulled through to have.

The company bear to part with exotic names such as Curcas Oil N. V., Tantalus Rare Earths AG, COMplus Technologies SE or Recycling Commodities SE. You were supposed to be specialized in the search of Rare earths or the production of crude oil. In the opinion of the investigator, they served mainly one purpose: The personal enrichment of the defendant and his dubious business partner.

advertising campaigns led to an "increase in the stock price"

Therefore, Peter N. brought in a first step, smaller companies in which he himself "held significant equity positions" on German stock exchanges. In the second step, he will "concerted paid advertising have organized campaigns" for these companies on the stock exchange of letters and in the forums. This had led to a "rise in the stock price". In the third step, the person sold his shares with huge profits.

According to the Prosecutor, Peter N. was paying its business partners for the publication of the company's positive representations, and shares recommendations in each case a compensation in the "six - to seven-digit range". In the media, about the exchange letter to Tiger & Dragon, I have found, however, no indication that it was "an agreed and paid-for advertising campaign". The reader (and subsequent investors) were deceived.

market letter: Supposedly ad-free and independent

On the website of the publishing house, which issued the exchange of letters Tiger & Dragon, was advertised according to the public Prosecutor's office, among other things, the following corporate principles:

"All exchange services are complete and work completely independently. The only way of objective reporting, and system are guaranteed to have recommendations that are free of third party interests. All of the editors-in-chief, editors, and publishing staff are contractually obliged to strict rules against insider trading to be observed ... So that we can ensure that no one can profit at the expense of our customers through targeted 'course pusherei'."

defendant wanted cheap shares purchased expensive

This is a promise to sell shares of interested parties seems not to have been complied with. How the dirty Deals between the defendants, Peter N. and his otherwise pursued market letter-business partners will be expired, shows the example of the company Curcas Oil N. V. is The share was 9. November 2009 on the stock exchange in Frankfurt am Main listed and from this day on, among others, in Munich and the electronic trading platform XETRA-traded.

"the founder and the main shareholder of Curcas was the Alternative Energy Private Equity Fund B. V., headquartered in the Netherlands, the sole was beneficial to the accused", the Prosecutor's office. Peter N. held, therefore, private "part of the shares" of the company and should be advertised in the paid-for market letter Tiger & Dragon massively for Curcas. "It was the accused person in order to ensure, as much as possible on the course to interact with, to be able to divest themselves of the purchased shares significantly higher prices."

Curcas shares rose after the purchase recommendation to 10.53 percent

The advertising campaigns for his company's stock was the defendant, according to prosecutors, cost a lot, a total of several million euros. The expenditure should have to be profitable-because of the indictment, it would have been without the fake recommendations "never to the increased demand for the shares".

The first jubilee-publication Curcas share in the market letter Tiger & Dragon on 6. December 2009 "led to a sudden price increase of 10.53 per cent", according to the calculations of the investigators. Then, Peter N. have sold "the majority" of the shares held by him – with a fat profit. In the other cases, it should be similar to run.

For the process are yet scheduled three days of trial.

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Updated Date: 09 June 2020, 07:26

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