A Man from Hawaii Charged for Pump-and-Dump Scheme
A man from Hawaii, Jeremy Koski, has been charged by the Securities and Exchange Commission (SEC) for a scheme in which he allegedly manipulated the price of unsecured loans by spreading fake press releases and lies about converting the loans into a cryptocurrency. The scheme involved shares owned by Koski in a trust fund operated by retailer JCPenney. Here are the key points:
– Koski distributed fake press releases and redemption notices to drive up the price of the shares in a pump-and-dump scheme.
– He fabricated the fake notices and press releases, knowing that their contents were false.
– Koski started the scheme to protect himself from a potential loss on his investment in JCPenney shares.
– He purchased over 287,000 debentures for about $302,000 and spread fake redemption notices to increase the share price.
– The shares traded between $0.01 and $0.27 per share, and Koski sold some of his shares for a profit of $815.
In September 2021, Koski shared a fake press release claiming that the trust shares were being converted into a cryptocurrency in collaboration with Jim Simons, the founder of Renaissance Technologies. However, neither Simons nor Renaissance were involved. The SEC brought the case against Koski for the harm caused to investors who purchased the shares at inflated prices. Koski is scheduled for a preliminary hearing in November.
Hot Take
Jeremy Koski’s alleged pump-and-dump scheme highlights the risks and potential manipulation in the crypto market. It serves as a reminder for investors to exercise caution and thoroughly research before making any investment decisions. The SEC’s action against Koski demonstrates their commitment to protecting investors and maintaining the integrity of the market.
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