SEC Charges Five Individuals, Led by Rakan Patel, with Spreading False Corporate Rumors for Illicit Trading Profits

The SEC has charged Barton Ross Patel with disseminating false rumors through internet chat rooms and message boards about pending corporate mergers and acquisitions involving publicly traded companies. He allegedly used his contacts to spread the rumors, and profited from trading these stocks based on the false information. For his alleged wrongdoing, Patel is facing civil charges related to violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. Furthermore, the SEC is seeking to have him held accountable for generating more than $1 million in illicit profits from his scheme. The SEC’s investigation was aided by the US Attorney’s Office and the FBI, and its litigation will be led by Damon Taaffe and supervised by James Carlson.