Value Manipulation


Value manipulation happens when someone makes a fraudulent statement or misrepresentation to manipulate a security’s value. This can be done with the purpose of persuading investors to purchase the security or to keep their investment position in the security. The results of value manipulation can be highly devastating to the victim when losses are incurred due to the deceptive information provided. If you or your loved ones are victims of value manipulation, you have the right to file a case against the perpetrator and seek financial compensation.

At Weltz Law, we understand how serious the ramifications of experiencing value manipulation can be. Hence, our team of experienced fraud attorneys are committed in helping you pursue the recovery you deserve. Call us at (877) 905-7671 today.

Understanding Value Manipulation

Value manipulation is a fraudulent scheme or misrepresentation of the value of a security in order to influence investors’ investment decisions for personal gain.

There are many ways that perpetrators can commit value manipulation. Here are some of the common methods:

Pump and dump

This happens when someone gives deceptive or misleading statements about a security, so it gains interest and people start buying it. Once the price has gone up high enough, the perpetrator sells their investment to profit, causing the price to fall quickly.

Poop and scoop

This is the opposite of pump and dump. The perpetrator spreads misinformation about a security so investors start selling their stocks. When the price drops, the perpetrator buys it for a low price.

Painting the tape

This happens when a few people artificially inflate the value of a security by performing transactions between themselves. This paints the picture that there is high trading activity happening, so other investors want to buy in. When the price increases, the group of perpetrators sell their stocks to other investors for a profit.

Wash trading

This is when someone buys the same securities many times in a short period of time to increase its volume. This tricks other investors into thinking that the investment opportunity is attractive. When the price has escalated, the perpetrator sells it at a profit.

It is important for investors to protect themselves against value manipulation because it can result in huge losses. Therefore, it is always recommended for investors to check and do their own research before acting on information about securities.

Penalties for Value Manipulation

When convicted, the consequences for value manipulation can be severe for those involved. Depending on the circumstances of the case, possible penalties include:

Discuss Your Value Manipulation Case Today. We Represent Clients Nationwide

If you are a victim of value manipulation, you deserve to pursue justice and financial compensation. With more than 30 years of collective experience in helping clients recover damages due to fraud and misrepresentation, our securities fraud attorneys at Weltz Law can help you develop the best strategy for your case.