ECONOMIC CRIME - DEALINGS IN FOREIGN SECURITIES - NCJRS TRANSLATION

• NCJ Number: 32527
• Author(s): J VONUNGERN-STERNBERG
• Date Published: 1976
• Length: 20 pages
• Sponsoring Agency: US Dept of Justice; US Dept of Justice NIJ Pub
• Corporate Author: National Institute of Justice/NCJRS
• Publication Format: Document
• Language: English
• Country: United States of America
• Note: TRANSLATION BY NELSON ROSE FROM AN ORIGINAL WORK IN GERMAN APPEARING IN KRIMINALISTIK, V 29, N 3 (MARCH 1975), P 100-105

Annotation

DESCRIPTION OF THE METHODS USED BY UNSCRUPULOUS PROMOTERS OF STOCK IN SWINDLING WEST GERMAN CITIZENS, WITH INFORMATION ON THE LAWS AND STATUTES APPLICABLE IN SUCH CASES AND THE PROBABILITY OF OBTAINING CONVICTIONS.

Abstract

EXPERIENCE HAS SHOWN THAT GERMANS TEND TO BE SO NAIVE ABOUT INVESTMENTS THAT UNSCRUPULOUS PEOPLE ARE ABLE TO MAKE GOOD PROFITS BY SELLING THEM SO-CALLED PENNY STOCKS OF DOUBTFUL VALUE. FRAUDULENT DEVICES ARE FREQUENTLY USED IN ORDER TO MAXIMIZE PROFITS. THESE DEVICES ARE DIVIDED INTO TWO CATEGORIES. THOSE WHERE A CRIMINAL ACCUSATION PROBABLY CANNOT BE PROVED ARE PROMISES OF AN INCREASE IN PRICE, CONCEALING THE FACT THAT THE SHARES ARE WORTHLESS, AND MANIPULATION OF PRICES. THOSE WHERE A CRIMINAL ACCUSATION IS EASIER TO PROVE ARE FORGING SECURITIES, CHARGING THE WRONG PRICE, SELLING NONNEGOTIABLE STOCK, AND FRAUDULENT SWITCHING OF STOCKS. REASONS ARE GIVEN IN EACH CASE AS TO WHY IT IS OR IS NOT EASY TO PROVE AN ACCUSATION. ALSO DISCUSSED ARE CERTAIN ILLEGAL PRACTICES INDULGED IN BY PERSONS MANAGING TRUSTS FOR INDIVIDUALS AND OPERATING BUSINESSES DEALING IN SECURITIES. FICTITIOUS CASE HISTORIES ARE INCLUDED TO ILLUSTRATE SOME OF THE METHODS USED. FOR ORIGINAL DOCUMENT IN GERMAN, SEE NCJ-28165.