International Stock Manipulator Sentenced To 20 Months For Pump-And-Dump Scheme

The United States Attorney for the Southern District of New York announced today that RONALD BAUER was sentenced to 20 months in prison for manipulating seven different stocks in a “pump-and-dump” scheme designed to fraudulently inflate the value of BAUER’s own shares in those companies.  BAUER pled guilty on November 4, 2024, before U.S. District Judge Paul A. Engelmayer, who imposed today’s sentence.

“From overseas, Bauer manipulated stock prices to enrich himself at the expense of unsuspecting investors,” said U.S. Attorney Jay Clayton.  “Today’s sentencing sends a clear message:  those who seek to manipulate U.S. markets from outside the United States will face justice.  We thank our domestic and overseas partners and will continue to work with them to keep our markets fair.”

According to the Indictment, public filings, and statements made in court proceedings:

BAUER, a Canadian-UK citizen, orchestrated multiple “pump-and-dump” schemes after previously being sanctioned by the SEC in 2006, when he received a five-year ban from serving as an officer of public companies or participating in penny stock offerings.  In his guilty plea, BAUER admitted to securities fraud involving seven issuers. His sophisticated scheme involved gaining controlling interest of unrestricted stock, then concealing ownership by distributing shares among nominee entities through a Swiss corporation called Blacklight, S.A.  While maintaining behind-the-scenes trading authority and significant influence over company management, BAUER and his co-conspirators orchestrated purposeless “match trades” —i.e., placing buy and sell orders in the same stock on the same day—and funded promotional campaigns without disclosing their controlling interest or intent to sell. They took deliberate steps to hide that nominee entities were funding these promotions.  During or shortly after generating market interest, BAUER sold large percentages of holdings and collected the proceeds through the elaborate network of nominee entities he controlled.​​​​​​​​​​​​​​​​

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In addition to his prison term, BAUER, 49, of London, United Kingdom, was sentenced to three years of supervised release and ordered to forfeit approximately $4,377,228.74.

Mr. Clayton praised the outstanding investigative work of the Federal Bureau of Investigation.  He further thanked the Justice Department’s Office of International Affairs of the Department’s Criminal Division, as well as authorities in the United Kingdom, in particular the Crown Prosecution Service and the National Crime Agency’s National Extradition Unit.  Finally, Mr. Clayton also thanked the Securities and Exchange Commission, which separately initiated civil proceedings against BAUER. 

The case is being handled by the Office’s Securities and Commodities Fraud Task Force.   Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, and Vladislav Vainberg are in charge of the prosecution.