Stock market manipulators: Hard to catch

Powerful people & their friends profit by controlling stock prices, while others lose, but very difficult to catch, prosecute & punish them.

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EQUITIES

SEC lacks ability to nab manipulators

3 Apr 2013
Oranan Paweewun

The securities regulator wants to put more effort into cracking down on share price manipulators during the bull market, but its work remains limp as it has no authority to file charges against perpetrators.

The Securities and Exchange Commission (SEC) is only the starting point for a stock manipulation crackdown, as these matters go to court, said secretary-general Vorapol Socatiyanurak.

The SEC just filed its first criminal complaint this year against Shine Bunnag and 12 others for manipulating the share prices of Mida Leasing Plc (ML) from March-May 2008 and in August 2010 and doing the same to Max Metal Corporation (MAX) shares in September 2010. There are growing worries over the irregular movements of several stocks now that the market is skyrocketing.

"We have sufficient evidence to file criminal complaints against Mr Shine and 12 others," said Mr Vorapol

Mr Shine also faces a criminal complaint filed with the Department of Special Investigation last year for manipulating share prices from 2008-10, with Mr Vorapol adding that there is progress on the case without elaborating. He was accused of trading 12 securities through his own and others' accounts in a manner that raised share prices.

The recent SEC probe found Mr Shine and his allies continuously sent trading orders through the accounts of several groups of people to buy and sell both securities in a manner that raised share prices, using volume orders at different price levels, said Mr Vorapol.

In addition, certain evidence pointed to securities trading orders being executed through others' trading accounts for the benefit of Mr Shine, the SEC said in a statement

Last year, the SEC filed complaints against 70 alleged offenders for breaching the Securities and Exchange Act of 1992, with 21 of the 70 accused of manipulating share prices.

However, Mr Vorapol declined to comment on whether there are any other suspected stock manipulation cases under SEC investigation.

Veerathai Santiprabhob, a former chief strategy officer at the Stock Exchange of Thailand, said criminal procedures take a long time and the SEC cannot file charges itself, hindering any attempt at cracking down on stock manipulators.

"Specific knowledge is needed to file charges against those suspected of manipulating stock prices, as these cases are fairly complicated. If the SEC could file charges itself, that would help to sharpen the effectiveness of stock manipulation crackdowns," he said.

(Source: Bangkok Post, EQUITIES, SEC lacks ability to nab manipulators, 3 Apr 2013, Oranan Paweewun, link) 

 
Stock Manipulation Vocabulary

stock - part ownership in a company; all the shares a company can make available; the value of those shares (See Wikipedia)

stock shares  - any of the units of equal value into which a company is divided and sold to raise money
shares - Same as "stock shares"
share price

manipulation - controlling or influencing something for personal gain (illegal or immoral); in a clever and dishonest way
stock manipulation - the act of manipulating stocks

manipulate (verb)
manipulators - people who break the law and manipulate stocks

manipulating the share prices
share price manipulators

crackdown - strong official action to punish lawbreakers การปราบปรามขั้นเด็ดขาด การใช้กำลังเข้าปราบปรามของเจ้าหน้าที่
a stock manipulation crackdown

equities - the money for business activities (capital) that a company obtains by selling shares rather than from loans (See Wikipedia)

securities - financial assets for a company that many people own such as a stock shares or bonds
Securities and Exchange Commission (SEC) - the government agency that investigates stock share manipulation  

nab - to catch or arrest a criminal จับ
nab manipulators - catch and arrest share price manipulators
SEC lacks ability to nab manipulators

effort - the energy and enthusiasm that people put into an activity; an attempt to do something ความพยายาม
put effort into

a bull market - a market when stock prices are going up by large amounts, lots of buying and selling, lots of money being made

put more effort into cracking down on share price manipulators during the bull market

limp - not strong, firm or stiff (examples: a limp wrist, a limp branch)
its work remains limp - the work of the organization is weak and ineffective (does not achieve it wishes to achieve)

file - to take official action, in this case, to make an official complaint ยื่นคำร้อง
charges - bring a criminal case against a person
file charges

authority - power อำนาจ the power to make decisions or tell people what to do อำนาจในการสั่งการ
has authority
has no authority

perpetrator - a person who does something bad (illegal, harmful or dishonest) 
it has no authority to file charges against perpetrators

regulator - an official who makes certain that the companies who operate a system work effectively and fairly ผู้มีอำนาจควบคุม
securities regulator

The securities regulator wants to put more effort into cracking down on share price manipulators during the bull market, but its work remains limp as it has no authority to file charges against perpetrators.

matters - affairs, a situation that you must deal with that has problems
these matters go to court

The Securities and Exchange Commission (SEC) is only the starting point for a stock manipulation crackdown, as these matters go to court, said secretary-general Vorapol Socatiyanurak.

complaint - when someone says that something is wrong or not satisfactory การร้องเรียน
criminal complaint

filed - to take official action, e.g., to make a formal complaint ยื่นฟ้องร้อง
filed criminal complaint

irregular - not moving the way it normally moves, abnormal movements
irregular movements
growing worries over the irregular movements of several stocks

skyrocket - to increase suddenly by a large amount
the market is skyrocketing.

The SEC just filed its first criminal complaint this year against Shine Bunnag and 12 others for manipulating the share prices of Mida Leasing Plc (ML) from March-May 2008 and in August 2010 and doing the same to Max Metal Corporation (MAX) shares in September 2010. There are growing worries over the irregular movements of several stocks now that the market is skyrocketing.

evidence - facts statements or objects that help to prove whether or not someone has committed a crime หลักฐาน

sufficient - enough พอเพียง
sufficient evidence
sufficient evidence to file criminal complaints

"We have sufficient evidence to file criminal complaints against Mr Shine and 12 others," said Mr Vorapol

progress - advance, go forward completing tasks that move you towards achieving a goal;  the process of gradually improving something ความก้าวหน้า ก้าวหน้า พัฒนาการ
there is progress on the case

elaborate - to give details
without elaborating - without giving more details

trade - buy and sell something
trading securities

manner - way วิธีการ
trading securities in a manner that raised share prices

accused of trading 12 securities through his own and others' accounts in a manner that raised share prices

Mr Shine also faces a criminal complaint filed with the Department of Special Investigation last year for manipulating share prices from 2008-10, with Mr Vorapol adding that there is progress on the case without elaborating. He was accused of trading 12 securities through his own and others' accounts in a manner that raised share prices.

probe - an investigation;to attempt to find out the truth about something; to examine การตรวจสอบ การสอบสวน
SEC probe

allies - groups, countries, organisations, etc. that have agreed to work together to achieve something กลุ่มผู้สนับสนุน
Mr Shine and his allies

volume - the quantity or amount of something
volume orders - big orders, large volume orders
raised share prices by using volume orders at different price levels

The recent SEC probe found Mr Shine and his allies continuously sent trading orders through the accounts of several groups of people to buy and sell both securities in a manner that raised share prices, using volume orders at different price levels, said Mr Vorapol.

trading orders - a request from a client (customer) to buy or sell stocks

execute - to do something
execute trading orders

securities trading orders being executed through others' trading accounts

benefit - to get help or an advantage from something ผลประโยชน์
for the benefit of Mr Shine

In addition, certain evidence pointed to securities trading orders being executed through others' trading accounts for the benefit of Mr Shine, the SEC said in a statement

alleged - claimed, but not yet proven ที่ถูกกล่าวหา
offenders - people who broke a law
alleged offenders

the SEC filed complaints against 70 alleged offenders

Last year, the SEC filed complaints against 70 alleged offenders for breaching the Securities and Exchange Act of 1992, with 21 of the 70 accused of manipulating share prices

decline - say "no", you won't do something
comment - to express an opinion แสดงความคิดเห็น a remark, telling what you think or what your opinion is about an issue หมายเหตุ
declined to comment

investigation - the process of trying to find out all the details or facts about something การสอบสวน การตรวจสอบหาข้อเท็จจริง
cases under SEC investigation

suspected - people believe that they might have done something wrong, but not yet proven; thought to be something เป็นที่สงสัย
suspected stock manipulation cases under SEC investigation

However, Mr Vorapol declined to comment on whether there are any other suspected stock manipulation cases under SEC investigation

strategy - a plan to achieve long term goals ('strategy' gives the big picture, 'tactics' the details)
officer - a high level person in an organisation with special responsibilities (a government officer, a police officer, an army officer)
chief strategy officer

Veerathai Santiprabhob, a former chief strategy officer at the Stock Exchange of Thailand, said criminal procedures take a long time and the SEC cannot file charges itself, hindering any attempt at cracking down on stock manipulators

complicated - having so many parts conected in so many ways that it is difficult to understand and deal with (for example, a complicated machine or a city with a complicated system of streets) ที่ซับซ้อน

fairly complicated - complicated (but less than "very complicated")
these cases are fairly complicated

effectiveness - working well and producing the results intended
sharpen the effectiveness - make them more "effective"
sharpen the effectiveness of stock manipulation crackdowns

Specific knowledge is needed to file charges against those suspected of manipulating stock prices, as these cases are fairly complicated. If the SEC could file charges itself, that would help to sharpen the effectiveness of stock manipulation crackdowns," he said