According to a press release from the U.S. Attorney’s office, Matthew Bell was indicted on charges of securities fraud in connection with an alleged $300 million market manipulation scheme in four publicly traded companies.
According to the press release, the indictment alleges that between October 2012 and July 2014 that the defendants and others orchestrated two “pump and dump” schemes, defrauding investors in the public companies: CodeSmart, Cubed, StarStream and Staffing Group. In order to artificially control the price and volume of shares in those companies, they coordinated their trading activity and concealed their own ownership interests in those companies.
The White Law Group is investigating the liability that Bell’s employers may have for his actions. Brokerage firms have a legal responsibility to adequately supervise the business activities of their employees. If a broker engages in a scheme that misleads clients the brokerage firm that employs them may be liable for negligent supervision.
The firm’s investigation has uncovered other penny stock investments that may have similar problems, including Towerstream Corporation.
If you were a client of Matthew Bell and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm dedicated to the representation of investors in FINRA arbitration claims against brokerage firms throughout the United States. Our offices are located in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, please visit the firm’s website at www.WhiteSecuritiesLaw.com.Tags: Sould & Vibe recovery options, Towerstream Corporation class action, Towerstream Corporation investigation, Towerstream Corporation lawsuit, Towerstream Corporation litigation, Towerstream Corporation losses, Towerstream Corporation Matthew Bell, Towerstream Corporation penny stock, Towerstream Corporation pump and dump Last modified: July 17, 2015