Man reportedly got $939K in stock fraud scheme

A 41-year-old man from Nevada has been charged in a civil action lawsuit citing stock fraud that reportedly made him more than $930,000.

The Las Vegas Sun reports that Daryl O. Anderson is suspected of recommending Pink Sheets-quoted Cloudtech stock to his former brokerage customers, friends and relatives between June 2007 and January 2008. The suspect allegedly described the stock as coming from an up-and-coming company and that those who invested in it could double or triple their money in a relatively short period of time.

Anderson's investors reportedly listened to him and purchased more than 1 million shares of Cloudtech at a cost of $3 million, according to the lawsuit. This accounted for 33 percent of the total trading volume in the stock, which made the price of a share rise from 95 cents to $4.25.

The lawsuit, filed by the Securities and Exchange Commission last week, states that while Anderson was recommending Cloudtech, he was selling his shares in the company due to the inflated share price. This reportedly gained him $930,852 in illegal profits.