Allegation about Facebook & Twitter used in stock fraud

According to report, Facebook and Twitter social networking sites are said to be used to tout stocks in a classic “pump and dump” fraud of about $7 million that was uncovered during a cocaine-trafficking probe, U.S. prosecutors said on Tuesday.

New Jersey officials said that the trafficking was carried out by longshoremen and others of 1.3 tons of cocaine worth $34 million through the Port of New York.

A statement was issue by the Manhattan U.S. Attorney’s office said 11 out of 22 people charged used more than 15 web sites, Facebook pages, and Twitter “feeds” to “defraud the investing public into purchasing stocks that were being manipulated by participants in the conspiracy.”

However, the spokeswoman for Twitter declined to comment on the announcement and also the spokesman for Facebook declined to comment on this allegations.

The case is USA v. Susser et al, U.S. District Court for the Southern District of New York, No. 10-mag-2190. If convicted then they might face up to 20 years in prison.

[Via- Reuters]

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