#1 out of 14
crime27m ago
New York stock traders sound alarm on 330% increase in pump-and-dump schemes
- Latest development shows a 330% jump in pump-and-dump complaints, per FBI and SEC data cited by CBS New York Investigates.
- Two New York traders tell CBS News they lost tens of thousands after following group chat tips.
- Investors were drawn to MSGY on the Nasdaq, with reports of price swings and eventual declines after purchases.
- A Peekskill trader said their $80,000 stake dropped to $10,000 as losses mounted amid the scheme.
- A Long Island participant reported nearly $100,000 in losses to the ruse.
- Experts say social media accelerates misinformation, helping schemes spread quickly.
- Officials emphasize that many involved companies have little to do with the schemes themselves.
- The investigation cites ‘The Professor’ as a WhatsApp figure guiding some traders.
- Inquiries are ongoing as authorities review tips, chats, and market activity tied to MSGY.
- CBS News New York investigates how social networks propagate stock tips and what investors should know.
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