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Scotts Valley Man Pleads Guilty To Defrauding Investors In Medical Technology Company

The Scotsman Valley man pleaded guilty last week to a plan to defraud investors in a public company securities and manipulate the company’s share price.

According to court documents cited by the U.S. Attorney’s Office in the Northern District of California, Jason Nielsen, 48, of Scotts Valley, was a major shareholder in Arrayit, a California-based public medical device company.

From about 2019 until April 2020, Nielsen said in a June 9 lawsuit that he had engaged in an illegal “scalp” and “counterfeiting” program to manipulate the price of Arrayit’s securities, at his request.

Nielsen used online bulletin boards to publicly disclose false and misleading information about the nature of his trading in Arrayit securities, in order to get others to purchase Arrayit securities and thus raise the stock price, a practice known as “scalping”.

Nielsen has admitted that he has placed orders to purchase Arrayit shares which he intends to cancel prior to execution. The purpose of these orders was to deceive the

Prosecutors said it was possible for Nielsen to sell his shares at artificially inflated prices, a practice known as “counterfeiting.” While engaged in these methods, Nielsen secretly sold his previously purchased shares at an artificially inflated price.

Nielsen pleaded guilty to one count of securities fraud. He is due to stand trial in October, and is facing a maximum sentence of five years in prison.

Scotts Valley Man Pleads Guilty To Defrauding Investors In Medical Technology Company Source link Scotts Valley Man Pleads Guilty To Defrauding Investors In Medical Technology Company

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