Stock Scam

$7 Million Stock fraud revealed in Facebook, Twitter

Thursday, 07 October 2010

Bangalore: The practice of using Facebook and Twitter to tout stocks has now come to limelight during a cocaine trafficking probe. According to the U.S. prosecutors, fraud of about $7 million was uncovered. The fraud was uncovered by investigators during a two year probe of suspected trafficking by longshoremen and others of 1.3 tons of cocaine worth $34 million through the port of New York and New Jersey.

"11 out of 22 people charged used more than 15 web sites, Facebook pages, and Twitter "feeds" to 'defraud the investing public into purchasing stocks that were being manipulated by participants in the conspiracy'," according to a statement by the Manhattan US Attorney's office.

While eight longshoremen and three others face narcotics trafficking charges, 11people face charges in this conspiracy. These 11 people were from New York, Florida and Pennsylvania and they are accused manipulating web site links that touted picks in four penny stocks said to be based on the authors' expertise and independent research. If these 11 are convicted they will face imprisonment of upto 20 years.

I suppose, this is one of the aspects which will always differentiate between India and the USA.
In the USA, justice is swift and exemplary unlike India where corruption from top to bottom in the executive and judiciary makes criminals escape justice or even if convicted, the punishment does not fit the crime.
They are out on bail most of the time and having recourse to appeals to the higher courts, most of them just do not get convicted.
If the judiciary wants they can be swift as has been demonstrated in a few cases where foreign nationals were involved. But in 99% of the time, there is no justice for justice delayed is justice denied.