Tuesday, June 23, 2009

Alan M. Ralsky Pleads Guilty To Fraud

The accused mastermind of a scheme that pumped up the value of "pink sheet" Chinese penny stocks through tens of millions of unsolicited e-mails pleaded guilty today to federal fraud charges.

Alan M. Ralsky, 64, of West Bloomfield Township, known as the "Spam King" for his years as a prolific e-mailer for hire, entered pleas to fraud and money laundering charges late today before U.S. District Judge Marianne O. Battani.

Also pleading guilty were Ralsky's son-in-law, Scott K. Bradley, 38, also of West Bloomfield Township, and co-conspirators James E. Fite, 36, of Culver City, Calif., John S. Bown, 45, of Fresno, Calif., and William C. Neil, 46, of Fresno, Calif., according to federal authorities.


SEBI To Get More Powers

Capital market regulator, the Securities and Exchange Board of India (Sebi), will soon be able to attach the properties of fraudsters, file application for winding up of market intermediaries under the Companies Act to recover money that investors have lost and will get powers similar to that of a civil court.

With these significant powers, which Sebi's board approved by recommending amendments to the Sebi Act and the Securities and Contract Regulation Act (SCRA), the market regulator will become stronger and more autonomous. There is also talk of doubling the amount of maximum penalty which Sebi can levy on wrong doers from the current Rs 50 crore.