Newspaper article International New York Times

U.S. Charges Bulgarian over Two Fraudulent Takeover Bids ; Investor Accused of Using Federal Database to Try to Manipulate Price of Stock

Newspaper article International New York Times

U.S. Charges Bulgarian over Two Fraudulent Takeover Bids ; Investor Accused of Using Federal Database to Try to Manipulate Price of Stock

Article excerpt

Nedko Nedev is said to have tried to manipulate the stocks of Avon and Rocky Mountain Chocolate Factory by using an S.E.C. database to submit bogus takeover bids.

The United States Securities and Exchange Commission has charged a Bulgarian man with misusing an important federal database for filing securities documents to submit false takeover bids for two companies, Avon Products and Rocky Mountain Chocolate Factory.

In a lawsuit, the S.E.C. said the man, Nedko Nedev, tried to fraudulently manipulate the stock prices of the two companies by using the Edgar database to submit bogus takeover bids. He had taken positions in the companies and hoped to profit from artificial inflation of their stock prices after the fake bids became public, the S.E.C. said.

The lawsuit also said Mr. Nedev was involved with issuing a false news release in 2014 concerning a buyout offer for the Tower Group that was issued in the name of what the S.E.C. called a supposed insurer based in Bulgaria.

The S.E.C. said the bids for Avon and Rocky Mountain Chocolate were submitted by two previously unknown investment firms, PTG Capital Partners and PST Capital Partners, which had been approved to file documents to the Edgar database, which businesses and investment professionals worldwide use to submit regulatory filings.

The S.E.C. filed the lawsuit in Federal District Court in Manhattan just weeks after what regulators said was Mr. Nedev's most recent attempt to manipulate the market with a fake bid to buy Avon, the cosmetics company, for $18.75 a share. The takeover bid, which appeared on Edgar, caused the shares of Avon to jump 20 percent before the company issued a statement saying it thought the offer was a hoax.

The false bid for Avon raised concern about the integrity of the Edgar database, which more than 300,000 companies, investment firms and individuals use to electronically submit regulatory filings with information that has the potential to move markets. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.