SEC takes action against online fraudster 'Tokyo Joe'

The US Securities and Exchange Commission (SEC), has announced it is taking action against online stock tipster 'Tokyo Joe' Park for using his Internet-based investment advice service to drum up interest in stocks in which he has a personal stake.

In a public statement, the SEC claims that 'Tokyo Joe' Park - real name Yun Soo Oh Park - charged up to $200 per month to subscribers of his 'Societe Anonyme' service to provide stock picks and investment advice. The SEC alleges that Park failed to disclose to users that he owned the stock he was recommending, and that he was profiting buy selling quickly after the share price rose on his recommendation.

The SEC claims that Park reaped "substantial illegal profits" from these and other illegal activities.

The case comes as UK law firm, Philippsohn Crawford Berwald, issued a warning on the growing threat of this kind of fraud - called pump and dump - in the UK.

Law firm, Philippsohn Crawford Berwald, warns that with the growth of online trading in the UK, it is only a matter of time before such scams occur in the UK. Litigation partner, Steven Philippsohn, said: "It is the ideal climate for fraud because of the increase in highly inexperienced online investors expecting high returns."

He commended the SEC's action, but called on the authorities in the UK to take a more proactive role in preventing the growth of Internet fraud. "They should be looking at the Web - at the bulletin boards and the chat rooms - and taking action if they suspect wrongdoing," he said.