Guy Arrested For Allegedly Making A Fake Takeover Provide Fitbit’S Stock

Fitbit shares are down nearly 25 percent this year through Thursday compared with the S&P 500’s 6 percent return.
After profiting at the expense of the public, Murray allegedly took elaborate steps to hide that he was behind the fraud,” acting U.S. Attorney Joon H. Kim said in the statement.
“As alleged, Robert Walter Murray created a fake tender offer for Fitbit to drive up its share price and then illegally profit from his manipulation of the market.
Murray allegedly bought call options for Fitbit stock around Nov. 9, 2016, and then sold the options for a profit after the “sham tender offer” moved the company’s shares, according to the complaint.
The U.S. attorney for the Southern District of New York announced the arrest of a trader on securities and wire fraud charges, who allegedly manipulated Fitbit shares last year with a fake tender offer from a Chinese company he registered with the SEC.

Read more on: http://www.cnbc.com/technology