Four people who were accused of being involved in a New York penny stock scheme were arraigned on associated charges on Sept. 11. According to the report, authorities believed that four others were also involved in the scheme, but it was not stated if they were facing arraignment at the time the report was released or if they had already been arraigned.
Authorities claimed that the two of the accused individuals and a third person sent out emails to potential investors from websites that were owned by the defendants. During this time, they were also accused of merging private companies into public shell companies as they took control. It was believed that the defendants would then transfer shares of these companies to themselves, which resulted in an increase in the price of the stocks. It was stated that the defendants would increase the price of the shares by sending out the emails to promote the companies; however, they allegedly cashed out their shares before the price decreased.