Wednesday, July 11, 2007
The SEC announced that on June 20, 2007, a U.S. District Judge for the Middle District of Florida entered a default judgment against twenty-one year old Aleksey Kamardin. The complaint alleges that between July 13 and Aug. 25, 2006, Kamardin commandeered the online trading accounts of unwitting investors at various broker-dealers, liquidated existing equity positions and, using the resulting proceeds, purchased thinly traded stocks in order to create the appearance of trading activity and pump up the price of the stocks. The complaint further alleges that in seventeen instances, Kamardin, in his own account, bought shares in the thinly traded issuer just prior to or at the same time that compromised accounts were made to buy shares, creating the false appearance of market activity. Shortly after the intrusions, Kamardin sold all of his shares at the inflated prices. In all but three of these instances, Kamardin realized a profit from his trading, netting a total profit of $82,960.