NatLamp's chairman and other officers indicted

by Brian McKim & Traci Skene on December 15th, 2008

The executives who run National Lampoon have apparently all been indicted for manipulating the company’s stock.

Associated Press has a brief item here.

Los Angeles-based National Lampoon owns the rights to the “Vacation” and “Animal House” movies, among others. Prosecutors charged seven people with conspiracy and securities fraud on Monday.

Here is a more detailed account from MarketWatch.

All of the schemes involved efforts to manipulate the prices of publicly traded stocks by paying undisclosed kickbacks to individuals to purchase and hold the stock to create the illusion of market interest in the stocks. The objective was to induce the investing public to purchase a stock based on this artificial trading volume and, thus, increase the stock’s value. Most of the charged defendants, including the corporate officers described below, had significant holdings in the stock or stocks they sought to manipulate and could have made millions of dollars if they had successfully inflated the stock prices. The remaining defendants benefitted financially by receiving the illegal kickbacks to purchase the stocks.

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