Scotts Valley Man Pleads Guilty To Defrauding Investors In Medical Technology Company

A Scotts Valley man pleaded guilty final week in connection with a scheme to defraud…

Scotts Valley Man Pleads Guilty To Defrauding Investors In Medical Technology Company

A Scotts Valley man pleaded guilty final week in connection with a scheme to defraud buyers in a publicly traded company’s securities and manipulate the company’s inventory rate.

In accordance to courtroom documents cited by the U.S. Attorney’s Business office in the Northern District of California, Jason Nielsen, 48, of Scotts Valley, was a huge shareholder of Arrayit, a publicly traded medical gadget organization centered in California.

From about 2019 by April 2020, Nielsen said in a June 9 plea that he engaged in an illegal “scalping” and “spoofing” plan to manipulate the selling price of Arrayit securities, according to his plea.

Nielsen applied on the net concept boards to publicly write-up untrue and misleading details about the mother nature of his buying and selling in Arrayit securities, in get to induce other folks to purchase Arrayit securities and therefore push up the stock’s price tag, a practice regarded as “scalping.”

Nielsen admitted that he put orders to acquire Arrayit stock that he meant to cancel prior to execution. The objective of these orders was to deceive the

Prosecutors explained this permitted Nielsen to offer his shares at artificially inflated prices, a follow recognized as “spoofing.” While engaged in these methods, Nielsen was secretly advertising his have earlier obtained shares at an artificially inflated value.

Nielsen pleaded guilty to one particular rely of securities fraud. He is scheduled to be sentenced in Oct and faces a optimum penalty of 5 a long time in jail.