The United States Stock Exchange Commission has accused Pakistan IT company owner Nauman Aly of manipulating the IT related stock. Pakistani Nauman Aly has manipulated the US Stock Exchange by manipulating the price of Integrated Device Technology Inc.
According to US SEC, Aly announced a fraudulent scheme by manipulating the price of public-traded securities by filing false information on the Commissions’ public database. Ally executed this scheme from Pakistan and used it to obtain at least close to half a million dollars in ill-gotten gains.
The case has been registered against Nauman Ali. Here is the summary of the case by US SEC:-
On April 12, 2016, Aly acquired a large block of out-of-the-money call options in Integrated Device Technology, Inc. (“IDTI”). Minutes later, Aly filed a report on EDGAR stating that he and a group of other people had acquired more than a five percent beneficial interest in IDTI and had written to IDTI’s board of directors offering to buy all of the company’s stock at a 65% premium.
These statements were false. Aly’s “group” did not own an interest in more than five percent of IDTI, and they had not offered to acquire all of IDTI’s stock at a premium. Aly made these false statements to increase the price of IDTI’s stock fraudulently to reap an enormous unlawful gain.
Following Aly’s false filing, IDTI’s stock price spiked by over 25 percent and Aly immediately sold the entire block of options that he had acquired less than half an hour earlier for over $425,000 in illicit profits.
By this Complaint, the Commission charges Aly with violations of the federal securities laws. By knowingly or recklessly engaging in the conduct described in this Complaint, Aly violated and, unless restrained and enjoined by the Court, will continue to violate the federal securities laws.
The Schedule 13D stated that the Reporting Group owned the following amounts of IDTI securities:
Download Complete Case from here https://www.sec.gov/litigation/complaints/2016/comp-pr2016-95.pdf