A Phoenix-based equity research owner is being charged with manipulating the stock that he solicited investors to purchase. The Securities and Exchange Commission alleges that Paul Pollack, who owns and manages a firm called Montgomery Street, engaged in 100 so-called "wash trades," which is the simultaneous purchase and sale of a security to make it appear actively traded without changing beneficial ownership. Pollack's trades often occurred within 90 seconds of each other at nearly identical prices. Pollack raised more than $2.5 million from 11 investors after being hired by a company to assist in two private placement offerings.
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