UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16493 / March 30, 2000
Securities and Exhange Commission v. Fred Moldofsky, 00 Civ. 2425 (S.D.N.Y.)(Baer)
SEC CHARGES INTERNET MESSAGE BOARD POSTER WITH SECURITIES FRAUD
The Securities and Exchange Commission today filed a complaint charging Fred Moldofsky, a self-described day trader residing in Houston, Texas, with securities fraud for posting a fake press release related to Lucent Technologies, Inc. ("Lucent") on a Yahoo! Finance message board. The complaint alleges that Moldofski posted the fake release, which purported to announce a quarterly earnings shortfall, more than 20 times on March 22 and March 23, 2000. The complaint alleges that Moldofsky violated Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder.
In a related action, Moldofsky was arrested on charges of securities fraud contained in a criminal complaint filed by the United States Attorney for the Southern District of New York and the United States Postal Inspection Service. United States v. Moldofsky, 00 MAG 0622. That complaint is based on the same conduct.
The Commission's complaint alleges the following:
The complaint alleges that Moldofsky violated Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. It seeks an order permanently restraining and enjoining him from future violations of those provisions, as well as civil penalties.