Quartet face criminal charges for ASX penny stock Telegram pump-and-dump scheme – Forex Factory

Four members of a quartet are facing criminal charges for their involvement in a pump-and-dump scheme related to penny stocks on the ASX. The scheme, which involved using Telegram to manipulate the stock prices of certain companies, is a serious offense that can have significant consequences.

The quartet allegedly engaged in a practice known as “pump-and-dump,” where they artificially inflate the price of a stock by spreading false information or creating a buzz around it, only to sell their shares at a higher price once the price has been boosted. This unethical practice can harm unsuspecting investors who may be duped into buying stocks at inflated prices.

The quartet’s use of Telegram, a popular messaging app, to coordinate their scheme highlights the growing trend of using social media platforms to manipulate stock prices. Regulators are increasingly cracking down on such schemes in order to protect investors and maintain the integrity of the stock market.

If found guilty, the quartet could face serious consequences, including fines and jail time. It serves as a reminder that engaging in fraudulent activities in the stock market can have severe repercussions. Investors should always be cautious and conduct thorough research before making any investment decisions to avoid falling victim to such schemes.