The twins promoted the scam on websites doublingstocks.com, which claimed the
robot’s stock analysis earned returns of 34% per week, and
daytradingrobot.com, it is said.
Meanwhile, the Hunters, now 20, received at least an additional $1.86 million
(£1.15m) in fees from stock promoters for their stock touting services,
which was advertised on website equitypromoter.com.
The site boasted of the brother’s ability to “rocket” the price and
volume of thinly traded penny stock issuers.
Writing on their website, Tom Hunter described himself as a 23-year-old stock
trader.
“I have been trading for 7 years and operate multiple penny stock
websites,” he is alleged to have said.
“These websites are extremely popular attracting many thousands of
visitors each day. Hundreds of these visitors provide me with their email
address with the desire to receive my weekly stock recommendations.
“One email to this list of people rockets a stock price.”
Once a stock promoter was reeled in by the scam, the twins would then send an
email to the thousands of investors subscribed to their newsletter,
recommending they buy the touted asset.
And once investors followed the bogus advise the shares value and volume would
instantly increase.
US officials claim the brothers, reportedly from Whitley Bay, North Tyneside,
breached both the Securities Act and Securities Exchange Act.
The SEC is seeking permanent injunctions against the pair to prevent them from
continuing to engage in securities fraud and an order requiring them to hand
over their ill-gotten gains, which were allegedly collected in UK and
offshore bank accounts.
In November, Newcastle Crown Court ordered Alexander Hunter to pay back nearly
1m US dollars after he admitted providing unregulated financial advice,
according to the BBC.
He was given a suspended 12-month prison sentence.
SOURCE: PA
Related posts:
Views: 0