Avon fraud: US authorities arrest Bulgarian perpetrator of fake US$8 billion buyout

Avon fraud: US authorities arrest Bulgarian perpetrator of fake US$8 billion buyout

The US Attorney for the Southern District of New York, Preet Bharara, has announced the arrest of Bulgarian national, Nedko Nedev, the man said to be behind the fraudulent US$8 billion takeover bid for direct sales giant Avon, according to a report published by Forbes.

Nedev is charged with eight counts of fraud, carrying a maximum sentence of 20-years in prison. The Securities Exchange Commission is seeking a disgorgement of any profits from the scheme, while the US Attorney’s charges carry a maximum fine of US$5 million, or twice the gain or loss from the offence in question.

Nedev was identified in June as the man behind a bogus buyout bid for Avon at US$18.75 a share on May 14, 2015. He is also thought to be behind two similar attempts to manipulate the markets.

 

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