NEW YORK ( TheStreet) -- The investigation of a pump-and-dump scheme by federal authorities has spurred regulators to kick a Chinese reverse-merger company out of the United States.On Friday, the Securities and Exchange Commission revoked the stock registration of China Digital Media ( CDGT) as part of a settlement deal between the company and securities regulators. According to court papers, China Digital Media's stock became wrapped up in a pump-and-dump scheme orchestrated by a number of American stock promoters, Chinese businessmen and purveyors of email spam, five of whom pleaded guilty to federal criminal fraud charges in June 2009. A grand jury in Detroit indicted another alleged conspirator on fraud charges unsealed in federal court last week.
To execute the spam campaigns, Tribble even reached out to Alan Ralsky, "the self-proclaimed 'King of Spam,' " according to the SEC suit. Rasky pleaded guilty to federal criminal fraud charges in June 2009. The scam netted $33 million in total profits for the conspirators, according to court papers. Tribble and Hui are now serving prison sentences of more than four years, having pleaded guilty to the federal criminal charges in 2009. -- Written by Scott Eden in New York >To contact the writer of this article, click here: Scott Eden. >To follow the writer on Twitter, go to http://twitter.com/ScottEden. >To submit a news tip, send an email to: firstname.lastname@example.org.