Feeds

Daytrader nabbed for fake Lucent BB posting

Boy, is he dumb

  • alert
  • submit to reddit

High performance access to file storage

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

High performance access to file storage

More from The Register

next story
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.