NCJ Number
125233
Journal
Law and Order Volume: 38 Issue: 7 Dated: (July 1990) Pages: 97-98
Date Published
1990
Length
2 pages
Annotation
This paper describes a computer program called Stock Market Analysis for Reconstructing Trades (SMART) developed by the Royal Canadian Mounted Police (RCMP) to detect stock market fraud.
Abstract
It was developed by four RCMP computer programmers in Ottawa and based on principles derived from an 18-month analysis of trade in a mutual fund fraud case. The program searches through brokers' tapes looking for anything from a particular name or account to determine who may have opened or closed a particular stock. The system eliminates much of the work of searching for market manipulators who gain control of a company and then manipulate trading of its shares to make unsuspecting investors believe share price will continue to climb. Presently the courts are deciding whether computer-generated evidence is acceptable to courts. SMART eliminates the need to wait for actual paper order tickets and can permit a possible conviction before the manipulator leaves town with the investor monies.