Day Trader Sent Webcaster Rumors to Sway Market, SEC Says (1)

The central player in a market manipulation scheme relayed false rumors to a trading webcast’s host and other contacts, and then timed his own trades for more than $1 million in ill-gotten gains, the SEC alleges.

Day trader Milan Patel received the rumors by telephone or instant messages from three other participants in the scheme, the Securities and Exchange Commission says. It filed the suit Thursday in the US District Court for the Northern District of Georgia.

The SEC previously charged those three and the webcast host, it says in a press release.

“Patel executed trades designed to profit ...