Massachusetts has its very own Gordon Gekko.
Xiaosong Wang, 36, of Upton allegedly participated in a sophisticated, multi-year scheme to manipulate the value of securities on the New York Stock Exchange and NADSAQ.
According to a press release from the U.S. District Attorney’s Office, Wang and his co-conspirators
used multiple brokerage accounts in their names…to artificially depress or inflate the prices of thinly traded securities. They did so by repeatedly placing relatively small sell (or buy) orders designed to send a false signal about a security’s supply (or demand) and to depress (or inflate) the security’s price. Xiaosong Wang and his co-conspirators then immediately placed relatively large buy (or sell) orders on the other side of the market to take advantage of their manipulations. Once the large orders executed, Xiaosong Wang and his co-conspirators cancelled their outstanding manipulative orders.
Today in Boston’s federal court, Wang pleaded guilty to one count of conspiracy to commit securities fraud. The plea agreement requires him to forfeit $1,041,084 of his illicit earnings and to return to China upon completion of his sentence.
Sentencing is scheduled for December 17, 2024. Wang could get up to 25 years in state prison and a fine of $250,000.