In an article published in Law360, Partner Matthew Beville and Counsel Alexandrea Rahill discuss the difficulties in proving market manipulation fraud. They highlight three rulings that have attempted to use alternative approaches when charging this type of fraud, and the roadblocks specific to each method.
Excerpt: "Establishing that criminal defendants engaged in market manipulation is extremely difficult, often due to the difficulty in establishing that they created prices that did not reflect legitimate sources of supply or demand. These challenges are particularly acute in matters involving so-called micromanipulations, in which the artificial price impacts may be short-lived or confounded by other market activity, and open-market manipulations, which are accomplished solely through trading activity without allegedly fraudulent statements."
