Reply #56: And those people could face criminal charges if their intent is to manipulate prices.

[girl gone mad]

SEC Charges Wall Street Short-Seller With Spreading False Rumors

Washington, D.C., April 24, 2008 - The Securities and Exchange Commission today charged Paul S. Berliner, a Wall Street trader formerly associated with Schottenfeld Group LLC, with securities fraud and market manipulation for intentionally spreading false rumors about The Blackstone Group's acquisition of Alliance Data Systems (ADS) while selling ADS short.

The SEC alleges that five months ago, Berliner disseminated the false rumor through instant messages to numerous individuals, including traders at brokerage firms and hedge funds. The false rumor also was picked up by the media.

"The message of this case is simple and direct. The Commission will vigorously investigate and prosecute those who manipulate markets with this witch's brew of damaging rumors and short sales," said SEC Chairman Christopher Cox.

"Today's action makes clear that the Commission will act swiftly and decisively against those who would seek to profit by disseminating false information to the marketplace," said Linda Chatman Thomsen, Director of the SEC's Division of Enforcement.

http://www.sec.gov/news/press/2008/2008-64.htm