Online Brokerage Fraud, and the Perils of Fishing in Alaska

The SEC is chock-a-block this morning with interesting litigation releases. Right after the Nortel entertainment, noted in previous post, we have action brought against three Indian cyber-fraudsters who allegedly obtained usernames and passwords for various online brokerage accounts, sold existing securities, and then traded low-volume stocks, including Google put options.

One defrauded account holder came back to a fairly big surprise:

On one occasion, a defrauded account holder departed for a five-day Alaskan fishing trip with a cash and equity balance of $180,000 in his online brokerage account. Upon returning home, his account-which had been victimized by one or more of the Defendants in the interim-had a balance of negative $200,000.

Usually that sort of thing only happens why you buy New Century stock, so that had to have been a puzzle for him or her.

Related posts:

  1. Trends in Online Fraud and Identity Theft
  2. Fraud at Online Dating Firms
  3. Reminiscing about My Brokerage Days
  4. Dark chasm in brokerage settlement
  5. Google Bidding Rules? We Don’t Need Any Steenking Rules