$1.3 Million Spoofing Scam: Trader Admits 'Walked the Price Up!'

SEC v. Mingran Wang — U.S. Securities and Exchange Commission Litigation Release No. 26574, dated June 25, 2026.

The SEC charged Mingran Wang with market manipulation through a "spoofing" scheme. Wang allegedly placed fake buy and sell orders for thinly traded securities to influence prices, then executed real trades at the manipulated prices, making over $1.3 million. He has settled the SEC's charges and faces parallel criminal charges from the DOJ.

In Plain English

Imagine you want to sell a rare toy. You pretend to put in a high bid for it, making others think it's worth more. Then, you quickly sell your own toy at that inflated price. Finally, you cancel your fake bid. Mingran Wang did something similar with stocks, placing fake orders to trick the market before making his real trades.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Targeting Illiquid Stocks From October 2021 to at least November 2024, Mingran Wang focused on over 150 thinly traded American Depositary Receipts (ADRs). These are stocks that don't have many buyers and sellers, making their prices easier to move.
2. Placing Fake Orders Wang would place large buy or sell orders for these ADRs on one brokerage account, orders he never intended to actually execute. These non-bona fide orders were designed to artificially influence the stock's price.
3. Moving the Market By placing these fake orders, Wang would "walk the price up" or down, depending on his goal. For example, a large fake buy order could make the price appear to be rising.
4. Executing Real Trades Once the price was manipulated to his advantage, Wang would then execute actual buy or sell orders through a *different* brokerage account he controlled.
5. Canceling Fake Orders After his real trades were completed, Wang would typically cancel the initial non-bona fide orders before they could be executed, removing the evidence of his manipulation.
6. Concealing the Scheme Wang took steps to hide his actions, including using separate brokerage firms for his fake orders and his real trades. He also kept notes on his computer detailing how to "hide" his manipulative trading.
7. Admitting Intent When questioned by federal investigators, Wang admitted his intent, stating he tried "to walk the price up [to] my advantage" with his non-bona fide orders.
8. Profiting from Manipulation Through this multi-year spoofing scheme, Wang allegedly obtained more than $1.3 million in ill-gotten gains.

The Enforcement Action

On June 24, 2026, the SEC filed settled charges against Mingran Wang of Fremont, California, for orchestrating a years-long market manipulation scheme through spoofing. Wang allegedly made over $1.3 million in ill-gotten gains by manipulating the price of over 150 thinly traded ADRs from October 2021 to November 2024. Wang consented to a judgment that permanently enjoins him from violating charged provisions, bars him from opening brokerage accounts for five years without disclosure, and leaves disgorgement, prejudgment interest, and civil penalties to be determined by the court. In a parallel action, the U.S. Department of Justice filed criminal charges against Wang.

Named in this action: Mingran Wang.

Original SEC litigation release ↗ · Browse all cases