SEC files settled charges against day trader for allegedly orchestrating market manipulation scheme

The Securities and Exchange Commission (SEC) has filed settled charges against California-based day trader Mingran Wang for allegedly orchestrating a multi-year market manipulation scheme that generated over $1.3 million in illicit profits.

According to the SEC's complaint, from October 2021 through at least November 2024, Wang manipulated the prices of more than 150 thinly traded American Depositary Receipts (ADRs) using a spoofing strategy.

The alleged scheme involved a three-step process: placing non-bona fide orders to move ADR prices, executing genuine trades to capitalize on the artificial prices, and then canceling the initial deceptive orders before they could be filled.

Wang reportedly conducted the spoofing orders through accounts at one brokerage and executed his actual trades via accounts at a separate firm. The complaint states he admitted to federal investigators that he used the fake orders to "walk the price up [to] my advantage."

The SEC's filing charges Wang with violating anti-fraud and anti-manipulation provisions of federal securities laws. Wang has consented to a judgment that permanently enjoins him from future violations, imposes a five-year restriction on opening brokerage accounts without disclosing the SEC action, and leaves disgorgement and penalties to be determined later.

In a parallel action, the U.S. Department of Justice has filed criminal charges against Wang.