Charges: 2 Minnesota men made thousands on 'pump-and-dump' scheme

They're accused of hijacking shell companies and pumping up stock prices before selling them for profit.
Author:
Publish date:

Three people, including two Minnesotans, have been accused of running an illegal "pump-and-dump" stock manipulation scheme. 

The men —  Mark Allen Miller, 43, of Breezy Point, Minnesota; Saeid Jaberian, 59, of Hopkins, Minnesota; and Christopher James Rajkaran, 35, of Queens, New York, and Guyana — "devised and carried out a scheme to surreptitiously hijack" and take over dormant companies, and then inflated the companies' stock to make money, the U.S. Attorney's Office of Minnesota alleges

The U.S. Attorney's Office, citing court documents, said the three men acquired large amounts of stock in dormant public shell companies that were trading at often less than 1 cent per share and then would assume control over the shell companies by creating and filing fake resignation letters and board resolutions. They would issue fake press releases and filings to "pump up" the price of the companies' stock and then "dump" (sell) their stock at inflated prices. 

Investigators believe the men made hundreds of thousands of dollars through this scheme, which ran from 2017-2019, CNBC reports

A 15-count indictment charges the men with conspiracy to commit securities fraud, securities fraud and wire fraud. 

Rajkaran was arrested on June 18 in New York and has made his initial court appearance. Miller and Jaberian have not made their first court appearances as of Tuesday morning.

Next Up

Cameron Champ

Final round helps Cameron Champ win 3M Open

Champ picked up his third career victory on Sunday afternoon.

Screen Shot 2021-07-25 at 1.08.41 PM

Clinton elevator fire prompts evacuation in western Minnesota

A massive blaze could be seen from far away Sunday.

Bob Motzko

Mack Motzko, son of Gophers coach Bob Motzko, dies in car crash

The crash happened late Saturday night in Orono.

police tape

Victims of triple homicide near La Crosse identified as young men

The victims are ages 24, 24 and 23, respectively.

Screen Shot 2021-07-25 at 7.26.01 AM

Dive team finds body of missing 13-year-old girl in Chanhassen lake

The girl had last been seen on a float on Lake Minnewashta.

Fairmont Raceway

MN race track under fire after announcer's racist remarks

The Fairmont Raceway voiced support for the announcer on social media.

Grayson Murray

Grayson Murray criticizes PGA Tour after pulling out of 3M Open

After withdrawing with a knee injury, Murray unloaded on his Twitter account.

Screen Shot 2019-07-18 at 9.10.30 AM

Minneapolis residents will vote on replacing MPD with new public safety department

The Minneapolis City Council approved language for the ballot question Friday.

Related

Stock market chart

MN city councilor resigns following charges in stock manipulation scheme

Mark Allen Miller, 43, was charged with conspiracy to commit securities fraud, securities fraud and wire fraud.

jared fiege

Charges: Duluth man's scheme netted him thousands in COVID relief funds

He is accused of stealing people's identities to submit fake Unemployment Insurance applications.

court gavel

8 people charged in Medicaid fraud scheme totaling $860K

Collectively, they're charged with 46 counts of felony theft.

Screen Shot 2019-08-19 at 8.08.05 PM

6 men charged in connection to 'disturbing trend' of carjackings, shootings

The men are accused of three carjackings in one day, as well as other crimes.

raku sushi

St. Louis Park restaurant owners accused in 'sophisticated' tax fraud scheme

They're accused of underpaying sales taxes by nearly $240,000.

Lane kueng thao chauvin

4 former officers indicted on federal charges in George Floyd's killing

They're accused of violating George Floyd's civil rights.

U.S. district court minnesota - federal court

Charges: Red Lake man with knife sexually assaulted victim

He's also charged with one count of assault with a dangerous weapon.

police lights

2 people charged in separate Minneapolis homicides that happened hours apart

A woman is accused of stabbing a man in the chest over $60, while a man is accused of accidentally shooting a victim on the man's birthday.