Stockbroker Accused of 'Pump and Dump' Scheme

Stockbroker Accused of 'Pump and Dump' Scheme - NYTimes.com: "Federal prosecutors charged a New York stockbroker with conspiracy to commit securities fraud for what they said was his role in a “pump and dump” scheme to defraud investors, according to an indictment unsealed on Tuesday.

Gregg M. Berger, a former broker for Gilford Securities, is facing accusations that he and at least four other men manipulated thinly traded Chinese and Israeli stocks before selling them at inflated prices totaling roughly $30 million. Mr. Berger earned more than $600,000 in commissions, the indictment said.

“Pump and dump schemes undermine the integrity of our stock markets,” Lanny A. Breuer, assistant attorney general for the Justice Department’s criminal division, said in a statement. “When stock brokers exploit their trusted positions to enrich themselves at the expense of innocent investors, as Mr. Berger is charged with doing here, we will pursue them vigorously.”"