Trader charged with Alliance Data market manipulation
Published April 28th, 2008
The US Securities and Exchange Commission filed fraud charges against a former trader for spreading false rumors about Blackstone Group’s take-over bid for Alliance Data Systems and then profiting from the ruse.
The case comes as investigators probe whether a combination of false rumors and short-selling last month drove Bear Stearns to collapse.
The SEC is also investigating short selling in Lehman Brothers stock, people familiar with the matter say.
Related Articles
