The Commission's Complaint, filed on April 14, 2003, alleged that beginning on March 6, 2000, Armstrong touted the stock of BluePoint Linux Software Corporation ("BluePoint") by posting unsubstantiated, favorable buy recommendations on the Raging Bull internet site. Armstrong posted over eighty such recommendations during the first three weeks that the stock of BluePoint was publicly traded. According to the Complaint, Armstrong praised BluePoint's investment value and encouraged investors who were experiencing trouble having their orders filled to keep trying. The Complaint further alleged that the promoters of BluePoint were secretly transferring stock in three other companies to Armstrong at prices below the then current market for those three stocks and that Armstrong made at least $20,000 by selling the shares he received from the promoters of BluePoint. The Complaint alleges that Armstrong did not disclose in his internet postings that he was being compensated for making the postings.
United States Securities and Exchange Commission, Litigation Release No. 20228 / August 7, 2007, SEC v. Sierra Brokerage Services, Inc., et al
Said 'et al' being one Jerome Armstrong in this case. That would be the pal of Markos Moulitsas Zuniga of Daily Kos fame. Co-author of Kos' book. You know, that Armstrong. Crashing the gate or scamming the masses? You decide. The SEC already has. And has a fair chunk of Armstrong's money to back them up.
(You should also recall that this was the incident where Kos circulated a demand that other lefty blogs deprive the story of coverage. They obediently complied. Funny how the left likes to charge that the right are doing that sort of thing but ignore confessions of that on their side of the aisle.)