SEC Shuts Down Hollywood "Pump and Dump" Scheme

In a “pump and dump” scheme that looks like the movie The Wolf of Wall Street, the Securities and Exchange Commission today charged three California residents with defrauding investors.

SEC: “Boiler room” operation claims participation of top movie stars

The SEC alleges that a Los Angeles-based group raised money through a “boiler room operation” with “high pressure salespeople” who bilked investors out of $1.8 million for a movie that was never going to be made.  Their successful sales pitch to over 60 investors included false promises that well-known actors such as Donald Sutherland and Jean-Claude Van Damme would appear...