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Settlement of Stock Manipulation Charges with Financial Holding Company and Executives
SEC v. LNB Bancorp, Inc., Gary C. Smith, Thomas P. Ryan, Gerald S. Falcon and Thomas H. Eschke
- 2004
- $285,000
Defendants allegedly perpetrated a market manipulation scheme known as “marking the close” to artificially increase and stabilize the price of LNB Bancorp common stock. The scheme involved placing purchase orders for 100 or 200 shares during the last half-hour of the trading day for the employee benefit plan of the company’s primary subsidiary, to try to close trading in the stock with a purchase. The attempt was successful in 232 out of 285 days/purchases.
