Grassley presses SEC on whether fake filings allow market manipulation

Markets -- Stock ExchangeFrom Press Release


U.S. Sen. Chuck Grassley (R-IA) is pressing the Securities and Exchange Commission on whether its securities filing system is allowing market manipulation from fake firms at the expense of everyday investors.  Grassley’s inquiry comes after two incidents of possibly fake corporate takeover bids using the agency’s public database, one earlier this month for Avon Products and a prior incident involving the Rocky Mountain Chocolate Factory.

“This pattern of fraudulent conduct is troubling, especially in light of the relative ease in which a fake posting can be made,” Grassley wrote to SEC Chair Mary Jo White.

Grassley asked for an account of how many fake documents have appeared in the database of publicly traded companies and what steps the agency takes to verify the accuracy of filings.  His concern is the integrity of the securities markets.

Grassley’s letter is available here.