Ronald Bauer, Stock Manipulation, New York 2024

A master manipulator of international stock markets has been brought to justice in New York.

Ronald Bauer, a 49-year-old Canadian-UK citizen, was sentenced to 20 months in prison for orchestrating a sophisticated ‘pump-and-dump’ scheme that defrauded unsuspecting investors out of millions.

According to the indictment, Bauer manipulated seven different stocks, including concealing his ownership through a network of nominee entities and funding promotional campaigns without disclosing his controlling interest.

“From overseas, Bauer manipulated stock prices to enrich himself at the expense of unsuspecting investors,” said U.S. Attorney Jay Clayton. “Today’s sentencing sends a clear message: those who seek to manipulate U.S. markets from outside the United States will face justice. We thank our domestic and overseas partners and will continue to work with them to keep our markets fair.”

The scheme involved gaining controlling interest in the stocks, then concealing ownership by distributing shares among nominee entities through a Swiss corporation called Blacklight, S.A. Bauer and his co-conspirators then orchestrated purposeless ‘match trades’ and funded promotional campaigns without disclosing their controlling interest or intent to sell.

In addition to his prison term, Bauer was sentenced to three years of supervised release and ordered to forfeit approximately $4,377,228.74.

The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, and Vladislav Vainberg are in charge of the prosecution.

Ronald Bauer’s guilty plea was accepted on November 4, 2024, before U.S. District Judge Paul A. Engelmayer, who imposed the sentence on Bauer today.

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