Stock fraud charges issued by SEC
By Scott Files
Published on April 06, 2006
The two men, Semeer Thawani and Faisal Zafar, linked their fraudulent activity to concerns about health epidemics and terrorism.
In one of the cases, Zafar is said to have claimed that an issuer was getting a contract from the Department of Homeland Security. In another case, the men asserted that they were acquiring a company that produced "bird flu" vaccine.
The SEC said that the two men had created at least 300 different internet user ID's and had used them to post 1,000 messages about the stocks.
The case is seeking penalties and repayment of $873,000 in ill-gotten gains.
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