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Ding, Dong: EDGAR Fraud Calling

Joe Mont | May 15, 2015

The Securities and Exchange Commission, even as it ramps up examination efforts to ensure adequate cyber-security protections, has fallen victim to the very sort of market-manipulating trouble it is on the lookout for.

On May 14, at approximately 11:30 a.m., a PTG Capital Partners, a London-based, global private equity investment firm, disclosed in a regulatory filing on the SEC’s EDGAR system that it offered to buy Avon for $18.75 a share. The big problem: the firm is fictitious and there was no such offer. The bigger problem: even though trading in Avon stock was halted after discovery of the fake announcement, the filing was still the first document listed during an Avon search on EDGAR Friday morning.

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