SEC charges traders for fraud schemes on ‘meme stocks’
The Securities and Exchange Commission announced on Monday charging two private investors over fraudulent schemes that took advantage of exchanges by trading options of “meme stocks” with themselves.
Suyun Gu and Yong Lee used broker-dealer accounts under fake names for generating illicit profits and chose “meme stocks” that were being actively promoted on social media platforms impacting the market volumes and pushing the traders to make unfavorable orders.
“As alleged in our complaint, Gu and Lee engaged in a deceptive wash trading scheme to game the exchanges’ maker-taker programs and take advantage of market conditions associated with meme stocks trading. This case demonstrates the SEC’s ability to quickly investigate and expose complex trading schemes, including those conducted during times of significant market volatility,” said Joseph Sansone, SEC official.
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