Federal officials in Boston said on Thursday they charged 13 people in connection with a kickback scheme involving microcap stocks. The defendants included corporate officers, lawyers and a stock promoter who allegedly used kickbacks and other tricks to gather investments for thinly traded stocks, according to a Justice Department statement.
The investigation included an undercover agent posing as an investment fund representative, authorities said. The US Securities and Exchange Commission also said it suspended trading in seven companies innvolved in the alleged scheme The case follows a year-long investigation into the microcap stock market, officials said.