SEC v. Ling
DOCKET · 2:15-cv-02179 · FILED · MAR 27, 2015
Violations Charged
Market manipulation (marking the close, matched trades)
Case Overview
The SEC charged day trader Michael Ling with manipulating Cyberdefender Corp. stock to hold it above the $4.00 minimum closing bid that Nasdaq required for 90 consecutive trading days before a listing. Marking the close means trading at the very end of the day to affect where the price finishes. Over a period of 144 trading days, Ling traded on 127, traded in the final fifteen minutes on 54 of them, and set the closing price on 48.
Ling also entered 23 matched trades coordinated with an acquaintance. According to the complaint, he profited by more than $650,000, mainly by exercising warrants he had received at bargain prices. After the trading at issue ended, Cyberdefender's share price declined.
Joe's Role
The SEC's litigation release names Joe as providing assistance from the Microcap Fraud Task Force.
Outcome
The court entered final judgment in December 2015: $554,005.98 in combined disgorgement, prejudgment interest, and civil penalties, plus a permanent injunction.
ISSUERS · Cyberdefender Corp.
Public Records & Announcements
Litigation Release LR-23224 · Litigation Release LR-23439 (final judgment)