7 arrested over $140 million penny stock fraud scheme

The scheme is one of the largest in history, federal agents say

Federal agents have arrested six people in the U.S. and one in Canada in conjunction with a $140 million international penny stock fraud scheme, one of the largest of all time. They face charges including conspiracy, wire fraud and securities fraud.

From 2008 to this July, these suspects allegedly inflated the values of 12 or more worthless stocks and sold them to victims in 35 different countries, Bloomberg reports. Some of the victims were hit twice—a second scheme collected “advance fees” from purchasers to recoup their losses.

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