Two men have been arrested in Israel and a third is being sought after a New York indictment accused them of trying to cheat millions of people in a stock spam scam.
U.S. Attorney Preet Bharara (buh-RAH'-ruh) announced the arrests Tuesday of two men by the Israel police. He says the men manipulated trading in U.S. securities from overseas. He says they used fake identities to funnel millions of dollars in unlawful proceeds through a web of international shell companies.
Continue Reading Below
The prosecutor says the men sent false and misleading spam emails to millions of people in a pump-and-dump scheme. Such schemes enable people to drive up the prices of stocks so they can sell at a peak before the truth about the securities is discovered and the prices plummet.