(Corrects removing extraneous word in headline)
WASHINGTON, April 4 U.S. securities regulators
on Friday charged the owner of a New Jersey-based trading firm
and several other defendants in a scheme to manipulate the
market through an illegal practice known as "spoofing."
The Securities and Exchange Commission said that Joseph
Dondero, a co-owner of Visionary Trading LLC, as well as several
other owners and a New York-based brokerage firm called
Lightspeed Trading LLC will collectively pay $3 million to
settle the charges.
Spoofing involves a trader placing orders without the
intention of having them executed, a strategy that tricks people
into buying or selling stock at artificial prices.
Reuters reported earlier this week that the FBI is also
investigating the practice of spoofing more broadly in a probe
into high-speed trading.
(Reporting by Sarah N. Lynch)