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Old 11-24-2007, 04:11 PM
jhogstyle jhogstyle is offline
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Join Date: Apr 2007
Posts: 41
Default Re: Ask me about financial success to spending 2 years state prison

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I have a friend who works for a stock promoter. The business works as follows: Other companies pay my friend's company *in stock* to promote their stock to brokers (pump). Then my friend's company sells off it's shares of the company that it represents, driving stock-price into the dirt (dump).

So my friend has been working at this place for about a year and has never seen a single company that his firm represents actually increase stock value for more than a few days. So he is thinking of selling short every stock that goes through his company. Do you think he'd end up in your kind of situation if he did this and is it only a matter of time before the CEO of this stock promotion company ends up in jail?

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sounds like insider trading to me (which is what many ppl go to prison for)
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