Undercover Operation Nabs Market Insiders and Promoters in Penny Stock Market Sting

According to the charging documents and other court records, FBI agents conducted an undercover investigation into the alleged manipulation of thinly-traded companies with securities quoted in the over-the-counter market, commonly referred to as the “Pink Sheets.” As a result of the FBI’s efforts, public company officers, controlling shareholders, a transfer agent, and a promoter have been arrested and charged with conspiracy, securities fraud, mail fraud, and wire fraud. If convicted, the defendants face statutory maximums ranging from 5 years to 25 years in prison for each count of conviction.