Jonathan Lebed | |
---|---|
Born | September 29, 1984 |
Occupation(s) | Owner, Lebed Biz LLC |
Jonathan G. Lebed (born September 29, 1984) is an American businessman and former stock trader who reached an out-of-court civil settlement with the U.S. Securities and Exchange Commission (SEC) at age 15 for stock manipulation.
Lebed was raised in Cedar Grove, New Jersey, and graduated from Cedar Grove High School. [1] [2] [3]
Between September 1999 and February 2000, Lebed made hundreds of thousands of dollars from using a computer in his bedroom in Cedar Grove, New Jersey, using pump and dump by posting in internet chat rooms and message boards, encouraging people to buy penny stocks he already owned, thus, according to the SEC, artificially raising the price of the stock. Between September 1999 and February 2000, his smallest one-day gain was US$12,000, while his biggest was $74,000. [4] Lebed became the first minor prosecuted by the SEC. [5] [6] In 2001, Lebed and the SEC negotiated an out-of-court settlement in which Lebed forfeited $285,000 in profit and interest he had made on 11 trades without admitting any wrongdoing, allowing him to keep close to half a million dollars. [7]
In 2003, Lebed was an unsuccessful candidate for the Cedar Grove township council. [8] [9]
Lebed's legal issues were profiled in an episode of the 2001 BBC documentary The Future Just Happened. [10] [11]
In 2010, he was living in Wayne, New Jersey, and was the sole owner of Lebed Biz LLC, which runs a website touting penny stocks. [12] [1] In 2008, a company won a $2.56 million judgment against Lebed. [13]
The Nasdaq Stock Market is an American stock exchange based in New York City. It is the most active stock trading venue in the U.S. by volume, and ranked second on the list of stock exchanges by market capitalization of shares traded, behind the New York Stock Exchange. The exchange platform is owned by Nasdaq, Inc., which also owns the Nasdaq Nordic stock market network and several U.S.-based stock and options exchanges. Although it trades stock of healthcare, financial, entertainment, retail, and food businesses, it focuses more on technology stocks. The exchange is made up of both American and foreign firms, with China and Israel being the largest foreign sources.
The New York Stock Exchange is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is the largest stock exchange in the world by market capitalization.
Cedar Grove is a township in north central Essex County, in the U.S. state of New Jersey. As of the 2020 United States census, the township's population was 12,980, an increase of 569 (+4.6%) from the 2010 census count of 12,411, which in turn reflected an increase of 111 (+0.9%) from the 12,300 counted in the 2000 census.
Wayne is a township in Passaic County, in the U.S. state of New Jersey. Home to William Paterson University and located less than 20 miles (32 km) from Midtown Manhattan, the township is a bedroom suburb of New York City and regional commercial hub of North Jersey. As of the 2020 United States census, the township's population was 54,838, an increase of 121 (+0.2%) from the 2010 census count of 54,717, which in turn reflected an increase of 648 (+1.2%) from the 54,069 counted in the 2000 census.
Pump and dump (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements (pump), in order to sell the cheaply purchased stock at a higher price (dump). Once the operators of the scheme "dump" (sell) their overvalued shares, the price falls and investors lose their money. This is most common with small-cap cryptocurrencies and very small corporations/companies, i.e. "microcaps".
The Newark Light Rail (NLR) is a light rail system serving Newark, New Jersey, and surrounding areas, owned by New Jersey Transit and operated by its bus operations division. The service consists of two segments, the original Newark City Subway (NCS), and the extension to Broad Street station. The City Subway opened on May 16, 1935, while the combined Newark Light Rail service was officially inaugurated on July 17, 2006.
Penny stocks are common shares of small public companies that trade for less than one dollar per share. The U.S. Securities and Exchange Commission (SEC) uses the term "Penny stock" to refer to a security, a financial instrument which represents a given financial value, issued by small public companies that trade at less than $5 per share. Penny stocks are priced over-the-counter, rather than on the trading floor. The term "penny stock" refers to shares that, prior to the SEC's classification, traded for "pennies on the dollar". In 1934, when the United States government passed the Securities Exchange Act to regulate any and all transactions of securities between parties which are "not the original issuer", the SEC at the time disclosed that equity securities which trade for less than $5 per share could not be listed on any national stock exchange or index.
Salomon Brothers, Inc., was an American multinational bulge bracket investment bank headquartered in New York City. It was one of the five largest investment banking enterprises in the United States and a very profitable firm on Wall Street during the 1980s and 1990s. Its CEO and chairman at that time, John Gutfreund, was nicknamed "the King of Wall Street".
James Joseph Cramer is an American television personality, author, entertainer, and former hedge fund manager. He is the host of Mad Money on CNBC, and an anchor on Squawk on the Street. After graduating from Harvard College and Harvard Law School, he worked for Goldman Sachs and then became a hedge fund manager, founder, and senior partner of Cramer Berkowitz. He co-founded TheStreet, which he wrote for from 1996 to 2021. Cramer hosted Kudlow & Cramer from 2002 to 2005. Mad Money with Jim Cramer first aired on CNBC in 2005. Cramer has written several books, including Confessions of a Street Addict (2002), Jim Cramer's Real Money: Sane Investing in an Insane World (2005), Jim Cramer's Mad Money: Watch TV, Get Rich (2006), and Jim Cramer's Get Rich Carefully (2013).
Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information. The setups are generally made to result in monetary gain for the deceivers, and generally result in unfair monetary losses for the investors. They are generally violating securities laws.
Cedar Grove High School is a four-year comprehensive public high school that serves students in ninth through twelfth grades from the Cedar Grove, in Essex County, in the U.S. state of New Jersey, operating as the lone secondary school of the Cedar Grove Schools. "Committed to Excellence" is the school's motto. The school has been accredited by the Middle States Association of Colleges and Schools Commission on Elementary and Secondary Schools since 1968; The school's accreditation status was extended for seven years in Fall 2018.
Anthony Elgindy, was an American stock broker, and financial commentator who founded Pacific Equity Investigations. Elgindy gained a reputation for his "investigations" of companies. Towards the end of his life, Elgindy was convicted of insider trading and served seven years in federal prison.
Microcap stock fraud is a form of securities fraud involving stocks of "microcap" companies, generally defined in the United States as those with a market capitalization of under $250 million. Its prevalence has been estimated to run into the billions of dollars a year. Many microcap stocks are penny stocks, which the SEC defines as a security that trades at less than $5 per share, is not listed on a national exchange, and fails to meet other specific criteria.
Next: The Future Just Happened is a book by Michael Lewis published on July 17, 2001 by W. W. Norton & Company. The book argues that rapidly evolving technology will upend the power structure of society. It gives power to the youngster who doesn't have preconceptions and entrenched interests. By making information readily available, the internet erodes the power and mystique of many professions.
BATS Global Markets is a global stock exchange operator founded in Lenexa, Kansas, with additional offices in London, New York, Chicago, and Singapore. BATS was founded in June 2005, became an operator of a licensed U.S. stock exchange in 2008 and opened its pan-European stock market in October 2008. As of February 2016, it operated four U.S. stock exchanges, two U.S. equity options exchanges, the pan-European stock market, and a global market for the trading of foreign exchange products. BATS was acquired by Cboe Global Markets in 2017.
High-frequency trading (HFT) is a type of algorithmic trading in finance characterized by high speeds, high turnover rates, and high order-to-trade ratios that leverages high-frequency financial data and electronic trading tools. While there is no single definition of HFT, among its key attributes are highly sophisticated algorithms, co-location, and very short-term investment horizons in trading securities. HFT uses proprietary trading strategies carried out by computers to move in and out of positions in seconds or fractions of a second.
Michael James Burry is an American investor and hedge fund manager. He founded the hedge fund Scion Capital, which he ran from 2000 until 2008 before closing it to focus on his personal investments. He is best known for being among the first investors to predict and profit from the subprime mortgage crisis that occurred between 2007 and 2010.
SAC Capital Advisors was a group of hedge funds founded by Steven A. Cohen in 1992. The firm employed approximately 800 people in 2010 across its offices located in Stamford, Connecticut and New York City, and various offices. It reportedly lost many of its traders in the wake of various investigations by the Securities and Exchange Commission (SEC). In 2010, the SEC opened an insider trading investigation of SAC and in 2013 several former employees were indicted by the U.S. Department of Justice. In November 2013, the firm itself pleaded guilty to insider trading charges and paid $1.2 billion in penalties. The firm shrank after returning the vast majority of its outside investor capital. Point72 Asset Management was established as a separate family office in 2014. SAC ceased to exist as a separate entity in 2016. Point 72, essentially the continuation of SAC, manages 30 Billion as of 2023.
Silicon Investor is the first website that evaluated the stocks of high-tech companies. It is an Internet forum and social networking service concentrating on stock market discussion, with particular focus on tech stocks. Silicon Investor is currently owned and operated by Knight Sac Media Holdings.
Webull Corporation is an electronic trading platform, accessible via mobile app and desktop computer, offering commission-free and low-cost trading of stocks, exchange traded funds, options, margins, fixed income, and futures.