Damian Williams, the United States Attorney for the Southern District of New York, announced today that RONALD BAUER, a 49-year-old resident of London, United Kingdom, has pled guilty to conspiring to commit securities fraud, marking a pivotal moment in a lengthy investigation into a widespread “pump-and-dump” stock manipulation scheme that exploited ordinary investors. BAUER entered his guilty plea before U.S. District Judge Paul A. Engelmayer and is now set to receive his sentencing on May 20, 2025.
U.S. Attorney Damian Williams stated: “For years, Ronald Bauer orchestrated a sprawling ‘pump-and-dump’ scheme involving the shares of numerous U.S.-based issuers that preyed on ordinary, retail investors. While Bauer and his co-conspirators operated from abroad, they shamelessly took advantage of the U.S. financial markets to carry out their fraudulent activities, illicitly amassing millions of dollars in profits at the expense of unsophisticated victims. Today’s guilty plea underscores our Office’s unyielding commitment to bringing market manipulators to justice, despite their attempts to disguise their criminal conduct.”
According to detailed allegations in the Indictment, public filings, and statements made in court, BAUER and his co-conspirators engaged in fraudulent practices that included causing nominees to perform “match trades”—where both buy and sell orders in the same stock were placed on the same day solely for the purpose of creating an illusion of market activity. Furthermore, BAUER and his associates financed and orchestrated promotional campaigns, marketing various Issuers to artificially inflate trading interest, without disclosing their significant financial interests or intentions to liquidate considerable portions of their holdings based on the increased buying pressure that their campaigns generated. BAUER and his co-conspirators took elaborate measures to ensure that the nominee entities they controlled were obscured as the true financial backers of these promotional efforts.
During or shortly after the promotional campaigns, BAUER and his co-conspirators directed trading activities through the Blacklight nominee entities involving the Issuers’ stock, which included selling off a substantial portion of their holdings and subsequently requisitioning the proceeds from these stock sales back to themselves.
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BAUER, who now faces a maximum prison sentence of five years for his guilty plea, has also been ordered to pay a money judgment amounting to $4,377,228.74 as part of the plea agreement. The maximum potential sentence in this case is prescribed by Congress and provided here for informational purposes only, as any final sentencing will be determined by a judge.
Mr. Williams commended the exceptional efforts of the Federal Bureau of Investigation in this case. He also expressed gratitude to the Justice Department’s Office of International Affairs from the Criminal Division and to United Kingdom authorities, especially the Crown Prosecution Service’s National Extradition Unit. Additionally, Mr. Williams recognized the Securities and Exchange Commission, which has also initiated civil proceedings against BAUER.
The case is being prosecuted by the Office’s Securities and Commodities Fraud Task Force, with Assistant U.S. Attorneys Jason Richman, Matthew R. Shahabian, Noah Solowiejczyk, and Vladislav Vainberg leading the prosecution team.
**Interview with Damian Williams, U.S. Attorney for the Southern District of New York, on Ronald Bauer’s Guilty Plea**
**Interviewer:** Thank you for joining us today, Mr. Williams. Ronald Bauer recently pled guilty to conspiracy to commit securities fraud in a scheme that targeted ordinary investors. Can you elaborate on the significance of this case?
**Damian Williams:** Thank you for having me. This case represents a major victory in our ongoing efforts to combat securities fraud. Bauer’s guilty plea is crucial, as it highlights our commitment to protecting retail investors from manipulation and exploitation in the financial markets. For years, Bauer operated from abroad while orchestrating a “pump-and-dump” scheme that deceitfully inflated stock prices.
**Interviewer:** You mentioned that Bauer operated with co-conspirators to create an illusion of market activity. Can you explain what “match trades” are and how they fit into the fraudulent practices?
**Damian Williams:** Yes, absolutely. “Match trades” involve buying and selling the same stock on the same day through nominees. This tactic creates a false image of market activity, misleading other investors into believing there is genuine interest and liquidity in the stock. This manipulation is a common technique used in pump-and-dump schemes to drive up stock prices, allowing fraudsters to sell their holdings for substantial profits before the scheme collapses.
**Interviewer:** The indictment indicates that Bauer and his team financed promotional campaigns without disclosing their financial interests. Can you discuss the implications of this for investor trust?
**Damian Williams:** This is a significant breach of trust. When individuals invest in stocks, they expect transparency and honesty regarding the motivations behind promotional activities. Undisclosed financial interests can mislead investors into making decisions based on false information, ultimately leading to financial losses. Our office is dedicated to holding those who exploit this trust fully accountable, sending a clear message that these deceptive practices will not be tolerated.
**Interviewer:** While Bauer operated from abroad, you indicated that efforts are being taken to address such international cases of fraud. How does your office collaborate on these issues?
**Damian Williams:** We work closely with both domestic and international law enforcement agencies to investigate and prosecute securities fraud, regardless of where the perpetrators are based. The financial markets are interconnected, and it’s essential to have a global approach to address these crimes effectively. Our partnerships with agencies like the SEC and international organizations allow us to share intelligence and resources in order to bring fraudsters like Bauer to justice.
**Interviewer:** Lastly, what message do you want to convey to investors who may feel vulnerable to such schemes?
**Damian Williams:** I want to assure investors that our office is vigilant in protecting their interests. If something seems too good to be true, it often is. We encourage everyone to perform due diligence and always ask questions. If you suspect fraud, please report it. Together, we can help prevent such schemes and foster a safer investment environment.
**Interviewer:** Thank you for your insights, Mr. Williams. It’s reassuring to know that the fight against securities fraud continues with such dedicated efforts.
**Damian Williams:** Thank you for having me. It’s vital that we all stay informed and vigilant.
