SEC Accuses Ahmed Alomari and MCM Consulting of Fraud: Impact on Crypto Market & Coin Performance (COIN: SYMBOL)

SEC Accuses Ahmed Alomari and MCM Consulting of Fraudulent Activities

• The Securities and Exchange Commission (SEC) has filed charges against Ahmed Alomari and his firm, MCM Consulting, for securities fraud and other violations.
• The defendants allegedly promoted several microcap stock issuers, sold their shares without disclosure, and made substantial profits.
• The SEC is seeking a permanent injunction, disgorgement, civil penalties, and a ban on Alomari and MCM Consulting from penny stock trading.

The SEC has charged Ahmed Alomari and MCM Consulting with securities fraud, alleging they manipulated stock prices for personal gain. The case highlights the need for vigilance in the crypto market.

Details of the Charges

The SEC’s press release states that Alomari and MCM Consulting promoted at least five microcap stock issuers on social media platforms, investor chatrooms, and text blasts from March 2019 to February 2022. They allegedly sold their shares without disclosing their plans, resulting in profits of at least $1.4 million. The SEC also accuses Alomari of submitting false representation letters to sell shares acquired through promotional services, with his wife signing off on these letters.

Alleged Fraudulent Scheme

The SEC explains that such fraudulent schemes typically unfold in three phases. First, the fraudsters identify a stock and buy it at a lower price before any alleged manipulation. They then promote the stock to their followers, inflating its value by setting price targets and hinting at upcoming company news. Finally, they sell their shares into the market demand generated by this hype, securing a profit. To conceal their scheme, th... Read the full article for FREE at COINOTAG!