Trader in "free-riding" fraud case admits guilt

http://news.yahoo.com/trader-free-riding-fraud-case-admits-guilt-222630492--sector.html

 

I wish it said when. Could figure out how long it took regulators to discover the fraud.

 

you worried?

 

how does this work out, paired trades?

 

You move the market by buying in a favored account, and selling to each of your accounts by placing asks at a higher price than the original price moving the market up and making profits in the 61 accounts he had.

This is a known issue for brokers, but I'd never seen a non-professional able to do this.

 

u mean a non crook

 

More info on trade dates and methods here:

http://www.sec.gov/litigation/complaints/2011/comp22142.pdf