Study each of the following cases carefully. Briefly state the principle of law and your decision.
Selling Securities on the Web Jonathan G. Lebed was a 15-year-old Internet maven who, over about a six-month period, on 11 separate occasions “engaged in a scheme in which he purchased large blocks of thinly traded stocks and, within hours of making such purchases, sent numerous false and misleading messages over the Internet touting the stocks that he had just purchased.” Lebed sold these shares, usually by the next day. From these activities he realized a total profit during the period of $272,826. Is Lebed guilty of violating the securities laws? [ In the Matter of Jonathan G. Lebed, a Minor, through his Guardian , Administrative Proceeding, File No. 3-10291 (Washington, D.C.)]
Principle of Law:
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Decision:
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