Pump-and-dump schemes are illegal market manipulation tactics that artificially inflate the price of securities to attract unsuspecting investors, only for the perpetrators to sell their shares at a profit, causing the stock price to collapse. These fraudulent schemes violate U.S. securities laws, SEC and FINRA regulations, and international market rules. Investors, financial professionals, and regulators must be vigilant in detecting red flags, preventing manipulation, and ensuring compliance with anti-fraud laws.
This course provides an in-depth legal analysis of pump-and-dump schemes, market manipulation laws, SEC enforcement actions, investor protections, and litigation strategies, covering trading irregularities, deceptive promotion tactics, compliance requirements, and criminal penalties for securities fraud. Students will gain expertise in identifying and preventing pump-and-dump schemes, understanding legal enforcement mechanisms, and ensuring compliance with securities regulations.
Course Objectives
By the end of this course, students will:
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Understand the Legal Framework Governing Market Manipulation – Analyze SEC, FINRA, and international regulations targeting securities fraud.
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Evaluate the Characteristics and Warning Signs of Pump-and-Dump Schemes – Learn how fraudulent stock promotions and manipulative trading patterns work.
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Examine SEC and FINRA Enforcement Actions Against Pump-and-Dump Schemes – Study how regulatory agencies detect and prosecute stock manipulation cases.
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Analyze Legal Protections for Investors and Brokers – Review how compliance programs and due diligence can prevent exposure to fraudulent schemes.
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Assess Civil and Criminal Penalties for Securities Fraud – Develop legal strategies for avoiding regulatory violations and criminal liability.
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Explore Legal Remedies for Victims of Pump-and-Dump Schemes – Investigate lawsuits, class actions, and investor restitution efforts.
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Identify Best Practices for Market Surveillance and Risk Management – Learn how compliance officers, brokerage firms, and regulatory agencies detect market fraud.
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Prepare for Future Trends and Legislative Changes in Securities Fraud Enforcement – Examine how emerging technologies, AI, and digital asset markets impact fraud detection.
