Gloria green is the president of avco pharmaceuticals

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Gloria Green is the president of Avco Pharmaceuticals, Inc. She just received news that her stock had fallen $10 per share in the last hour. Gloria does not know that her competitor, John Steele, has started a rumor that she's about to file for Chapter 11 bankruptcy. John has been telling people this in a deliberate effort to harm Gloria's company. John does not know that Gloria's researchers have just discovered the cure for AIDS. Gloria, angry about John Steele's rumor, tells her stock broker Bill that her stock is about to rise in value because of the researchers' discovery. Bill a runs to the stock market floor and buys $100,000 worth of stock. Candy Cane, who shines shoes in the lobby of the stock market exchange, overhears Bill brag to Steve about his purchases and runs out and buys some of the stock. At the same time, Gloria's bothers, Ernie and Bert want to start their own business on Highway 95 in Florida. It will be an alligator wrestling farm. To get investors, they run ads in local newspapers looking for investors for the business. Several people respond to the ad and the investors' money is put into the business. The plan is for Ernie and Bert to run the business and then split the profit with the investors.

What legal problems do Bert and Ernie have potentially?

Have Gloria, John, Candy or Bill violated any federal laws?

 

 

Reference no: EM13849138

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