What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
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Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#2How is this any different than meme stocks on WallStreetBets?
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#3How is this any different than meme stocks on WallStreetBets?
He makes the case that this is no different from anything anyone does at all. The SEC is essentially a spam filter.
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#4Interesting. A little googling turns up that 25 years later, he's still in the pump-and-dump business!
Do what you love, I guess.
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#5How is this any different than meme stocks on WallStreetBets?
Only difference is he was doing this in the 90's. Today you will find telegrams pumping/dumping and manipulating the price of small stocks, crypto, etc.
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#6TL;DR: he argues that he did the same as everyone else on Wall street, so the SEC fines him $285,000, letting him keep more than half a mil of net profits. The system works as intended
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#7How is this any different than meme stocks on WallStreetBets?
This was a long time ago in a galaxy far far away.
Also the article mentions these were thinly-traded stocks.
I assume the argument would be that today this sort of thing is happening because it's Tuesday. i.e. it's normalized and if you get burned, it's almost someone's civic responsibility to part you from your money.
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#8> Lebed professes that he did nothing wrong – he did nothing different from Wall Street analysts. He states that he learned how people react to the stock market and acted on that knowledge.
So you trick people by lying to them, and it's ok because you take their money indirectly via the stock market. And because some analysts also do this (often suffering legal consequences), then it's definitely not wrong?
Shameful. And the father getting the kid an E-Trade account after the mother closed his other account? Sounds like the father should be sanctioned too.
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#9How is this any different than meme stocks on WallStreetBets?
Only difference is he was doing this in the 90's. Today you will find telegrams pumping/dumping and manipulating the price of small stocks, crypto, etc.
I was doing some market research for a penny stock company in 2000 and made my way over to a stock discussion board devoted to the company at one point. The amount of scaminess, cheerleading, and ignorance (feigned or otherwise) was unreal.
Re: What Happens When a Fifteen Year Old Pumps and Dumps with a Net Profit of $800k? (2002)
#10Interesting. A little googling turns up that 25 years later, he's still in the pump-and-dump business! Do what you love, I guess.
I found this Twitter account last posted to in 2014.
I checked a good few of the stocks he listed. I figured he would have struck a lucky score at one point but he seemed to have an uncanny ability to always pick losing stocks.
I was hoping for a happy ending like how many of the people I played Runescape with who hosted dicing games, speculated and flipped in-game assets became successful quants irl, but he sure did seem to just pick a gimmick and roll with it, never evolving or changing.