Feeds

Daytrader nabbed for fake Lucent BB posting

Boy, is he dumb

  • alert
  • submit to reddit

Intelligent flash storage arrays

Enthusiasm can get you a long way - and in the case of Fred Moldofsky, a 43-year old day trader from Houston, Texas, it could take you all the way to gaol. Moldofsky has been arrested and charged with securities fraud, after allegedly engineered a fall in Lucent's share price by posting a fake press release on a Yahoo! message board last Wednesday night. The following day, Lucent's share price fell by as much as 3.6 per cent, reducing its market cap by a whopping $7.1 billion. It didn't take too long to trace Moldofsky. A trace from Yahoo! through to AOL, his service provider, took police straight to his doorstep. Now he is in deep doo doo. Moldofsky, who is accused of trading 6000 Lucent shares on the day the bogus press release was posted, faces a maximum ten-year sentence and a $1 million fine, if found guilty. The Securities and Exchange Commission has also filed a related civil suit against him. And, we guess, that anyone who sold Lucent shares on Thursday, the day after Moldofsky is alleged to have posted the bogus press release, could have a case for suing him. The bogus press release was based on a genuine earnings warning released by Lucent on 6 January. Moldofsky is accused of posting it under the moniker "hot-like-wasabe". Accompanying this was the header: "LUCENT RELEASES EARNINGS WARNING! DAMN!". Moldofsky is also accused of reposting the fake 20 times under the name of a regular poster on the Lucent message board who was known for his bullish sentiments on the stock. ® Related Story Pairgain 'mastermind' faces huge Pairloss

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.