SEC Charges Webcast Host for Role in Market Manipulation Scheme

The Securities and Exchange Commission today announced charges against Mark Melnick, the host of a stock trading webcast, for spreading more than 100 false rumors about public companies in order to generate illicit profits. The SEC previously charged Barton Ross for his role in this scheme. According to the complaint, filed in the United States District Court for the Northern District of Georgia on September 30, 2021, Melnick received advance notice of companies about which another scheme participant planned to spread false rumors, and then shared the companies’ names with subscribers to his online trading room. Melnick advised the subscribers that he had taken positions in the companies, while other scheme participants also spread the false rumors through real-time financial news services, financial chat rooms, and message boards.