What I’m about to show you will shock you.
We all know how there are dirty players in the game, and they’ll stop at nothing to get a one up on the market…
There was one trader who took this to another level to make a quick buck, and he got way too greedy.
He ran an elaborate scheme and manipulated stocks a whopping 23,000 times!
This trader used at least 36 trading accounts to execute his evil plan, and this is the type of action I want to expose.
It’s this type of reckless behavior I want to direct your attention to because it can actually help you become a better trader if you know what to avoid and look for.
Market Manipulation Is A Big No-No, But This Trader Didn’t Give A Rat’s Tail
Joseph Taub for 2 short years worked his scheme netting over $17 million in illegal profits.
But like most evil villains he had his minions. Together they tweaked the securities prices in a slew of public companies. All by coordinating the trades in heaps of brokerage accounts that Taub reigned over.
He used “straw accounts.” Basically, an account in another person’s name that he would conduct his shady trading.
These straw accounts allowed him to fly under the radar. Hiding his scheme from the law and regulators…. For a time.
But this is only half the action. ── On to the manipulation!
How He Ran This Elaborate Scheme
Taub would regularly make simultaneous transactions in many different styles. The goal behind this move was to falsely influence the market price of certain securities. Creating a complete illusion of interest in that stock.
And his minions would follow suit.
In one single year, between 2014 to 2015, Taub engaged in AT LEAST 23,000 market manipulations. On average around 40 per trading day.
During this time Taub and his minions would use at least 2 accounts to complete their dirty work.
One account would make multiple orders. Driving the stock price up or down. This would be the helper account. And it often would work at a loss to help the other account.
The other account would be the winner. This account would snatch up the stock after the helper account had worked its very illegal magic.
To try and keep their practice of the dark trading arts under wraps the account would usually be held at 2 different firms.
Total Taub used at least 36 accounts using his family members’ names, latching on to spouses, parents, and even their kids. He also had access to his associates’ accounts and their family members.
By 2016, Taub had expanded his illicit plan. Branching out to new brokerages and roping new minions in.
Often brokerage firms would catch on that something hinky was going on. Regularly the accounts were flagged for concerning trades of the manipulative nature.
Taub made sure the replies to these flagged accounts claimed innocent ignorance with a promise to never do it again.
Court documents would reveal just how greedy Taub had gotten towards the end of his scheme.
This a WhatsApp conversation between Taub and his minion. Directly after he received the news that one account was flagged and closed.
That sucks (:
Minion: Dude let’s retire move to the Caribbean
We need to make money
Minion: OK next account is ready to go.
The Paper Trail Got Him Nabbed
Beyond the manipulative trading, Taub and his minions left a trail a mile long linking him to the scheme.
There also was a pile of emails from his minions to him holding usernames and passwords for the accounts. And slew of other exchanges. The idea that people think WhatsApp will hide their shady dealing is ill-conceived.
However, this is far from the only records linking him to the accounts.
See there is this little thing called an IP address. Maybe you have heard of it. Possibly in one of the thousands of crime dramas on Netflix?
Well, it records the internet connection you use.
I feel like we have all gotten at least one Facebook alert when we logged in somewhere new.
This is how a record of Taub logging in from his own home to use the straw accounts was proven.
Taub has admitted to his scheme and owned up to all of it. Because along the way he cheated the IRS.
…. By not having his name on the accounts involved in his scheme they received a lower tax rate than what would be applied to him. This allowed him to skirt a crap ton of taxes.
…. Talk about running a scam within a scam.
Right now, Taub is waiting to see if the courts will accept his plea.
If it is, he will receive 18 months behind bars. He will also forfeit $17.1 million and pay the IRS the $394,424 that he owes them.
Listen, there’s plenty of shady activity going on in the market… and this is just one of the ways the scum of the market try to make money.
The thing is, there are much larger players who are constantly throwing down wild beds in the options market and sometimes, it’s ahead of a catalyst event.
These seemingly well-timed trades line the pockets of the Wall Street sharks, and there is a way to legally steal their trade ideas.
If it sounds shady, it’s not… and let me explain to you why it’s not and how following the smart money has allowed me to generate some of my largest percentage winners.