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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES COMMISSION STOCK INTERNET FRAUD EXCHANGE COMMISSION ALLEGES MANIPULATION COMPLAINT E-MAILS PROFILED COMPANIES THOMAS CARTER CIVIL ANNOUNCEMENTS ENFORCEMENT ACTION CALIFORNIA TRADING PROFIT SWEEP DISSEMINATION FALSE INFORMATION PURCHASES ACT ANTIFRAUD PROVISIONS THEREUNDER AVOID INTERNET PUMP-AND-DUMP STOCK MANIPULATION SCHEMES REPORT SUSPICIOUS ACTIVITY INTERNET MARKET MANIPULATION |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16679/September 6, 2000
SECURITIES AND EXCHANGE COMMISSION v. THOMAS CARTER, Civil Action No.
CV 00-09457 GHK (SHX) (C.D. Cal.)
The Securities and Exchange Commission ("Commission") announced today
that it filed an enforcement action in federal district court in Los
Angeles, California against Thomas Carter ("Carter"), a 27-year old
resident of Santa Barbara, California. The Commission alleges that
Carter manipulated the securities of four companies in May and June of
1999 and that, as a result of his trading in the stocks that he
manipulated, Carter made a profit of $12,816.47. This action is part
of the fourth nationwide Internet fraud sweep conducted by the
Commission since October 1998.
The complaint alleges that Carter disseminated tens of thousands of
e-mails, entitled the "Unity List" e-mails, which contained materially
false information regarding certain profiled companies in which Carter
had recently purchased stock. The complaint further alleges that the
false information concerned purported pending announcements by the
profiled companies and information regarding the timing of Carter's
purchases and sales of the securities of the profiled companies. The
complaint further alleges that the trading volume and the stock price
of each of the four companies rose dramatically immediately following
Carter's dissemination of the e-mails, at which time Carter sold all
of his stock in the companies at a profit.
The Commission seeks an injunction, civil penalties and disgorgement
with prejudgment interest against Carter for violating the antifraud
provisions, Section 17(a) of the Securities Act of 1933 and Section
10(b) of the Securities Exchange Act of 1934 and Rule 10b-5
thereunder.
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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