12-13-2023 9:31pm

Online stock promoter indicted in alleged 'pump-and-dump' scheme

Anita Johnson-Brown Editor

A San Pedro man, Michael M. Beck, has been indicted by a federal grand jury for running a "stock scalping" scheme. Beck allegedly used his email list called "TeamBillionaire" and his social media accounts to deceive investors into buying penny stocks he recommended, while simultaneously selling off those same stocks for a profit. The indictment charges Beck with three counts of securities fraud and three counts of wire fraud, each of which carries a statutory maximum penalty of 20 years in federal prison.

According to the indictment, Beck purchased blocks of penny stocks and promoted those stocks to his many followers on Twitter. He encouraged subscribers of his TeamBillionaire email group to buy the stock, thereby increasing the trading volume of the stock and making the stock look more attractive to potential investors. While falsely telling his Twitter followers that he was still buying shares, Beck secretly sold shares of the same stock he was promoting into the artificially inflated market for a profit.

Investigators believe that Beck's fraudulent scheme resulted in profits of at least $500,000. The United States Securities and Exchange Commission previously filed a civil complaint alleging that Beck committed violations of federal securities law.

An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Beck is scheduled to make his initial court appearance on the indictment on January 9. IRS Criminal Investigation is investigating the case.

The Corporate and Securities Fraud Strike Force, created in October, is focused on complex corporate crimes, abuses by company insiders, and offenses that impact the nation's financial system.

The case is being prosecuted by Assistant United States Attorneys Carolyn S. Small and Jenna Williams of the Corporate and Securities Fraud Strike Force.

By Anita Johnson-Brown|The Los Angeles News