Trader in "free-riding" fraud case admits guilt

[Banjo]

http://news.yahoo.com/trader-free-riding-fraud-case-admits-guilt-222630492--sector.html

 

[bwolinsky]

Quote from Banjo:

http://news.yahoo.com/trader-free-riding-fraud-case-admits-guilt-222630492--sector.html

I wish it said when. Could figure out how long it took regulators to discover the fraud.

 

[stock777]

you worried?

 

[toc]

how does this work out, paired trades?

 

[bwolinsky]

Quote from toc:

how does this work out, paired trades?

You move the market by buying in a favored account, and selling to each of your accounts by placing asks at a higher price than the original price moving the market up and making profits in the 61 accounts he had.

This is a known issue for brokers, but I'd never seen a non-professional able to do this.

 

[stock777]

u mean a non crook

 

[Options12]

More info on trade dates and methods here:

http://www.sec.gov/litigation/complaints/2011/comp22142.pdf