BULGARIA’S PROSECUTOR’S OFFICE CONFIRMED THE ARREST OF NEDKO NEDEV, CHARGED IN STOCK MANIPULATION SCHEME

Bulgaria’s Supreme Cassation Prosecutor’s Office detained Nedko Nedev following a request of the U.S. prosecution authorities, Bulgaria’s Prosecutor’s office confirmed on 11th of March after Reuters agency announced earlier that Nedev, an alleged architect of stock hoaxes in the USA, was arrested.

The 38-year-old Nedev, a citizen of Bulgaria and the U.S, was detained on 10th of March for 72 hours. Three addresses in Bulgaria’s capital Sofia were searched, from where computer configurations and documents were seized.

On 9th of March, Bulgaria’s Supreme Cassation Prosecutor’s Office received a request by the U.S. Department of Justice for legal assistance in relation to an investigation into a fraudulent manipulation of the stock prices of two companies, allegedly orchestrated by a citizen of Bulgaria and the United States. The U.S. authorities also requested his temporary detention and subsequent extradition to the USA.

In addition, the U.S. authorities requested searches to be carried out in three addresses in the territory of Sofia in order to seize objects that might be relevant to the investigation.

On 9th of February, an indictment was filed in the U.S. Attorney’s Office, Southern District of New York. Nedko Nedev faces an eight-count indictment, with charges for crimes related to market manipulation, insider trading and aggravated identity theft for devising and carrying out a series of schemes to manipulate the public market for two securities through sham tender offers.

Based on the submitted indictment, Judge Frank Maas issued an arrest warrant for Nedko Nedev.

According to information of the U.S. prosecution authorities, from January 2012 through December 2012, Nedev devised and carried out a scheme to manipulate the public market for Rocky Mountain stock, enrich himself, and mitigate trading losses.

Three years later, from April 2015 through May 2015, Nedev devised and carried out a similar scheme to manipulate the public market for Avon stock and inflated the share price and trading volume of Avon stock through a sham tender offer.

In between the Rocky Mountain Offer and the Avon Offer, from October 2013 through May 2014, Nedev carried out a scheme to enrich himself by trading on material, nonpublic information concerning an offer to acquire Tower Group, which he understood was nonpublic at the time, and which he was duty-bound not to misappropriate for his own personal benefit.

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