LITIGATION RELEASE NO. 17479 / April 19, 2002
Securities and Exchange Commission v. Alexander Mark Pomper, Civil Case Number CV-01-7391, (E.D.N.Y. filed November 5, 2001)
SEC SETTLES FRAUD CHARGES AGAINST ALEXANDER POMPER FOR SPOOFING
The Securities and Exchange Commission announced today that the Honorable Jacob Mishler of the United States District Court for the Eastern District of New York has entered a Final Judgment against Alexander Pomper.
The Commission's complaint alleges that during 1999, Pomper engaged in a manipulative trading scheme known as "spoofing." The complaint alleges that Pomper placed numerous phantom limit orders that affected the National Best Bid and Offer prices for certain thinly-traded securities. This allowed him to receive otherwise unobtainable execution prices for orders on the other side of the market. The complaint alleges that Pomper was unjustly enriched by $8,100 as a result of this manipulative trading.
In the settlement, Pomper consented, without admitting or denying the allegations in the complaint, to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Pomper also agreed to pay $9,800 in disgorgement and prejudgment interest and to pay a $15,000 civil penalty.
See Litigation Release 17221