Case Study – Racketeering and Pump and Dump Investigations

A number of questionable individuals and attorneys were investigated by Specialized. In additional to sorting through the false names and layers of corporate shells, custom software was developed in C# to map the targets to corporate entities – due to the volume of corporate shells and the time period spanning several decades this was an enormous task. Additionally, the fraud-ring’s scheme to entrap individuals, take over start-ups and use the companies to launder unregistered securities, Specialized developed custom software.

Individual, Corporate Shell, and Unregistered Securities Tracker

The above software generated specific details of individuals, corporations, attorneys and volume of unregistered securities and the money they generated in pump and dump schemes. This information was provided to attorneys and law enforcement and resulted in a Qui Tam lawsuit filing, a RICO civil lawsuit, a SEC lawsuit and criminal charges in Southern District of New York.

In addition to collating evidence, the individuals needed to be tracked down and served. This was a feat within itself. Specialized was up to the challenge.