ASIC Secures Convictions in Telegram 'Pump and Dump' Stock Fraud Case

Four individuals have pleaded guilty to multiple criminal charges in connection with a coordinated pump-and-dump scheme related to Australian share prices. The Australian Securities and Investments Commission (ASIC) filed charges against the defendants on July 23, 2024, following an investigation into their activities on Telegram.

ASIC alleged that the defendants created a private Telegram group where they discussed and selected penny stocks for artificial price inflation. They promoted these stocks to public Telegram groups named ‘ASX Pump and Dump Group’ and ‘ASX Pump and Dump Channel’.

Over three weeks in September 2021, the group issued nine misleading announcements designed to drive up the share prices of selected ‘target’ stocks. The defendants acquired shares before purchases by the public, then sold them at inflated values once the prices spiked.

Defendants Larissa Quinlan, Kurt Stuart, Emma Summer, and Syed Yusuf face a maximum penalty for the conspiracy offence of 15 years’ imprisonment and a fine of exceeding $1 million. They pleaded guilty to dealing with proceeds of crime valued at $10,000 or more.

Additionally, Yusuf admitted to reckless dealings with criminal proceeds.

ASIC Chair Joe Longo welcomed the guilty pleas. The case is next in the Sydney District Court on 21 July 2025 for mention, to obtain a date for a sentence hearing.

Fraudulent investment groups on Telegram have proliferated. Investors are urged to exercise extreme caution and avoid engagement with unverified investment groups. BrokersView has exposed numerous such fraudulent schemes, highlighting the dangers of misleading investment discussions.

If you encounter a similar fraudulent scheme, you can Submit a Complaint to BrokersView.