Jiali Wang, Market Manipulation, Massachusetts 2022

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Market Manipulation Ring Busted in Weymouth

A sophisticated market manipulation scheme has been dismantled in Weymouth, Massachusetts, with one of the key players facing sentencing for his role in the conspiracy.

Jiali Wang, 44, a Weymouth resident, was sentenced to time served (three months in prison) and nine months of home detention by U.S. Senior District Court Judge William G. Young. Wang was also ordered to forfeit $7.75 million in illicit proceeds.

Wang pleaded guilty on August 5, 2022, to one count of conspiracy to commit securities fraud. The charges stem from Wang’s involvement in a multi-year market manipulation scheme, from approximately 2013 through at least 2018, with a group of securities traders located in China and Massachusetts.

The scheme involved using multiple brokerage accounts in Wang’s name and the names of others with whom he had a relationship to artificially depress or inflate the prices of thinly traded securities. Wang and his co-conspirators would place relatively small sell or buy orders to send a false signal about a security’s supply or demand, and then immediately place large buy or sell orders on the other side of the market to take advantage of their manipulations.

Once the large orders executed, Wang and his co-conspirators would cancel their outstanding manipulative orders. The scheme allowed them to profit from their manipulations, with Wang netting over $7 million in illicit proceeds.

U.S. Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement. Assistant U.S. Attorney James R. Drabick of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.

The sentencing marks a significant victory in the fight against market manipulation and securities fraud. The case serves as a reminder that those who engage in such activities will be held accountable for their actions, and the consequences can be severe.