The United States Attorney for the Southern District of New York announced that Ronald Bauer has been sentenced to 20 months in prison. Bauer was found guilty of manipulating seven different stocks in a "pump-and-dump" scheme aimed at fraudulently inflating the value of his own shares. He pled guilty on November 4, 2024, before U.S. District Judge Paul A. Engelmayer, who imposed the sentence.
"From overseas, Bauer manipulated stock prices to enrich himself at the expense of unsuspecting investors," stated 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."
Bauer, a Canadian-UK citizen, orchestrated multiple "pump-and-dump" schemes after being sanctioned by the SEC in 2006 with 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 scheme involved gaining controlling interest of unrestricted stock and concealing ownership by distributing shares among nominee entities through a Swiss corporation called Blacklight, S.A.
While maintaining trading authority and influence over company management, Bauer and his co-conspirators executed "match trades" — placing buy and sell orders for the same stock on the same day — and funded promotional campaigns without disclosing their controlling interest or intent to sell. They took 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 proceeds through nominee entities he controlled.
In addition to his prison term, Bauer, 49, from London, United Kingdom, was sentenced to three years of supervised release and ordered to forfeit approximately $4,377,228.74.
Mr. Clayton praised the investigative work of the Federal Bureau of Investigation and thanked the Justice Department’s Office of International Affairs along with authorities in the United Kingdom including the Crown Prosecution Service and National Crime Agency’s National Extradition Unit. The Securities and Exchange Commission also initiated civil proceedings against Bauer.
The case is managed by the Office’s Securities and Commodities Fraud Task Force with Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, and Vladislav Vainberg leading prosecution efforts.
