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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
STOCKS SECURITIES EXCHANGE COMMISSION MANDACI POSTINGS PRICE MANIPULATION INTERNET FRAUD GURSEL MANDACI CIVIL COMPLAINT IDENTITIES ISSUERS MARKET SWEEP SCHEME VIOLATIONS ACT THEREUNDER SEEKING PERMANENT INJUNCTION FUTURE VIOLATIONS DISGORGEMENT PREJUDGMENT CIVIL PENALTIES AVOID INTERNET PUMP-AND-DUMP REPORT SUSPICIOUS ACTIVITY ENFORCEMENT ACTIONS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16682/ September 6, 2000
SECURITIES AND EXCHANGE COMMISSION v. GURSEL MANDACI, Civil Action No.
00-CIV-6635 (S.D.N.Y.)
The Securities and Exchange Commission ("Commission") announced that
on September 5, 2000, it filed a complaint against Gursel Mandaci
("Mandaci") 25, of Brooklyn, New York, for using postings on the
Internet to inflate the price of securities he had purchased in order
to create short-term trading profits. Mandaci purchased thinly-traded
penny stocks using a margin account he holds at an online broker.
Then, using three different identities on the Internet, Mandaci made
large numbers of postings that touted the issuers. Mandaci's use of
different identities was designed to create the false impression that
there was widespread interest in the stocks he owned. In addition, the
postings contained false information about the issuers and baseless
price predictions. Mandaci made more than $23,000 in six stocks he
manipulated, including one stock that increased in price from $0.01 to
$0.38. Mandaci's touting increased the market capitalization of the
stocks he touted by a total of $92,772,845.81. This action is part of
the fourth nationwide Internet fraud sweep conducted by the Commission
since October 1998.
The Commission's complaint charges that Mandaci's scheme violated
Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act
and Rule 10b-5 thereunder. The Commission is seeking a permanent
injunction against future violations, disgorgement with prejudgment
interest, and civil penalties.
For tips on how to avoid Internet "pump-and-dump" stock manipulation
schemes, visit . For more information about Internet fraud, visit . To
report suspicious activity involving possible Internet fraud, visit .
For a description of other SEC enforcement actions involved in this
Internet Market Manipulation Sweep, visit .
_________________________________________________________________
Modified 09/06/2000
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