Skip to main content

Market Overview

This Day In Market History: SEC Settles Charges Against 15-Year-Old Stock Manipulator

Share:
This Day In Market History: SEC Settles Charges Against 15-Year-Old Stock Manipulator

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened: On this day in 2000, 15-year-old Jonathan Lebled settled civil charges from the Securities and Exchange Commission by paying a $285,000 fine.

Where The Market Was: The Dow Jones Industrial Average closed at 10,687.92 and the S&P 500 traded at 1,451.34.

What Else Was Going On In The World: In 2000, the dot-com bubble burst, sending the Nasdaq plummeting and ruining thousands of internet-based companies. Faulty tires produced by Bridgestone/Firestone are blamed for nearly 100 fatalities related to Ford Motor Company (NYSE: F) Explorer crashes. The average cost of a new house was $134,150.

Related Link: 9 Wacky Wall Street Terms And Where They Came From

SEC Charges Minor: Lebed holds the dubious distinction of being the first minor ever charged by the SEC.

The SEC alleged that, starting at age 14 in 1999, Lebed ran a pump-and-dump scheme from the computer in his bedroom. Lebed was accused of buying penny stocks and then posting in internet chat rooms and online message boards encouraging other traders to buy his stocks. This type of behavior is classified as market manipulation, and Lebed earned as much as $74,000 in a single day running his operation.

While Lebed never admitted to wrongdoing, he settled with the SEC in September 2000 by forfeiting $285,000 in profits he earned on 11 specific trades plus interest. Lebed was allowed to keep roughly $500,000 in profits he earned on other trades.

 

Related Articles (F)

View Comments and Join the Discussion!

Posted-In: this day in market historyEducation Legal SEC General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com