“Spam King” Charged With Stock Fraud

by Darren

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If you have ever received an unsolicited email with a hot stock tip, you are probably familiar with the work of the “Spam King” Alan Ralsky. He has now been indicted by a federal grand jury in his home city of Detroit over charges he headed a ring of email spammers who helped engineer “pump and dump” marketing schemes that defrauded hapless investors.

The 41-count indictment charges Alan Ralsky, 52, of West Bloomfield, Michigan, his son-in-law, and nine others operating a spamming operation that focused on running a stock “pump and dump” scheme.

“Today’s charges seek to knock out one of the largest illegal spamming and fraud operations in the country, an international scheme to make money by manipulating stock prices through illegal spam e-mail promotions,” Stephen Murphy, US attorney, said in a statement.

Under the scheme, the group sent spam touting thinly traded Chinese penny stocks, drove up their stock price, and reaped profits by selling the stock at artificially inflated prices, the statement said.

Ralsky denies the charges, despite bein involved in email spamming complaints in the past. I guess the true test will be, do the offers immediately go down? If so, you may have landed your man.

This is more reason to ignore stocks that are being touted by dubious means.

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