Daytrader Charged With Concocting Press Release That Sent Lucent Stock Tumbling
A daytrader was arrested Thursday on charges that he violated federal securities laws by posting a fake press release on the Internet last week that caused the stock of Lucent Technologies(LU Quote) to fall, slicing $7.1 billion off its market value.
Fred Moldofsky, 43, was arrested Thursday in Houston on criminal fraud charges filed by the U.S. attorney in federal court in Manhattan. The Securities and Exchange Commission has filed civil charges of its own.
Moldofsky posted the bogus press release March 22 on a Yahoo! (YHOO Quote) message board that said, in part, "Based on preliminary estimates, [Lucent] expects operating results for its second fiscal quarter of 2000 to be lower than analysts' estimates," according to the criminal complaint. ...
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