See the full article in the New York Post.
An alleged pump-and-dump artist and a cohort were arrested on a Midtown Manhattan street last week in a case that resembled an international cat-and-mouse game that could have been ripped from a spy thriller. An undercover FBI agent, posing as a middleman with access to crooked stock brokers, coaxed the alleged pump-and-dump financier, Jean-Pierre Neuhaus, from his home in Switzerland to the Big Apple to finalize the deal, The Post has learned.
…
Neuhaus’ reluctance to travel to the US appears to be related to a 2000 incident in which he was forced to pay the Securities and Exchange Commission more than $570,000 for an earlier shady stock deal.
Disclosure: No positions in any stocks mentioned and no relationships with any people or companies mentioned. This blog has a terms of use that is incorporated by reference into this post; you can find all my disclaimers and disclosures there as well.
Michael, reading through your blogs, I understand buy-in risk is a big problem with shorting pumps. But shorting for short periods (a day or less) seems irrational to me. Who knows when a pump will get dumped? The stock could be getting re-pumped right after you start shorting. What is your view on shorting a portfolio of pumped stocks over a longer time horizon. Hopefully, the risk of your entire portfolio getting bought in is low, but odds are that all the pumps in your portfolio will eventually get dumped.
I know people who have done that and it seems to work out okay. But I have also done okay by shorting for short periods of time.