Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—N.D. Cal.: SEC files settled action against day trader who executed alleged spoofing scheme, (Jun 25, 2026)
Organizations Mentioned:U.S. Department of Justice
By Suzanne Cosgrove
The Commission said the California man manipulated the price of more than 150 thinly traded American ADRs for a period of at least three years.
The SEC has filed settled charges against Mingran Wang of Fremont, California, for allegedly orchestrating a years-long market manipulation scheme through which he obtained more than $1.3 million in ill-gotten gains (SEC v. Wang, No. 4:26-cv-06291 (N.D. Cal. June 24, 2026)).
The scheme involved the manipulation of the prices of more than 150 thinly traded American Depositary Receipts (ADRs) through “spoofing” from October 2021 to at least November 2024.
By placing fake orders, Wang was able to move the market price of the targeted ADR securities, allowing him to purchase and sell ADRs at the manipulated prices. Wang placed his non-bona fide orders through accounts he controlled at one brokerage firm and executed his actual buy and sell trades through accounts he controlled at a different brokerage firm.
Allegations of spoofing. “Spoofing” refers to the practice of placing non-bona fide buy or sell orders for securities, which are then canceled, to artificially increase or decrease the market price of a security. According the SEC’s complaint, Wang placed buy and sell orders for ADRs that he never intended to execute.
As alleged, Wang’s spoofing scheme followed three basic steps: (1) Wang placed buy and sell orders for ADRs that he never intended to execute, which moved the market price of the targeted ADR securities; (2) Wang then executed orders to buy or sell the ADRs to take advantage of the manipulated price; and (3) Wang canceled the non-bona fide orders he placed in the first step, typically before those orders could be executed.
According to the SEC complaint, Wang took efforts to conceal his fraudulent actions and admitted to federal investigators that he tried “to walk the price up [to] my advantage” with his non-bona fide buy and sell orders.
Hedge fund cover. In addition to day trading, Wang founded and controlled a hedge fund known as Greenroots Capital Partners, LP. Greenroots Capital Partners was advised by Greenroots Capital Management, LLC, another entity founded and controlled by Wang. Greenroots Capital Management filed as an exempt reporting adviser in January 2022.
Wang marketed himself as the founder and investment manager of Greenroots Capital Management, claiming he had extensive knowledge and trading experience, including algorithmic trading.
In October 2025, after the Commission’s investigation began, Greenroots Capital Management withdrew as an exempt reporting adviser and represented that Greenroots Capital Partners had been liquidated as of October 28, 2025.
Consent agreement. The SEC’s complaint, filed in federal court in the Northern District of California, charges Wang with violating the anti-fraud provisions of Section 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(a) and (c) thereunder, as well as the anti-manipulation provisions of Section 9(a)(2) of the Exchange Act.
Wang consented to the entry of a judgment, subject to court approval, that permanently enjoins him from violating the charged provisions of the federal securities laws; enjoins him for a period of five years from opening, maintaining, or trading in any brokerage accounts without providing the relevant broker dealer a copy of the complaint and judgments in the SEC’s action; and provides that the court shall determine any disgorgement, prejudgment interest, and civil penalties at a later date.
Criminal charges filed. In a parallel action, the U.S. Department of Justice filed criminal charges against Wang.
According to a DOJ release, Wang pleaded guilty to one count of using interstate commerce for the purpose of securities fraud and agreed to forfeit over $1.3 million in securities fraud proceeds.
Wang is scheduled to be sentenced on September 30 in the Northern District of California and faces a maximum penalty of five years in prison.
Attorneys: Eugene N. Hansen for the SEC.
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