FRANKFURT (Germany) - GERMAN authorities said on Thursday they have raided 20 homes and businesses as part of a wider investigation into an international ring - including four Germans - suspected of selling shares in worthless companies.
The Federal Criminal Police, or BKA, said in a statement the raids were part of an international action that had been coordinated with Swiss and other authorities. They were carried out Wednesday along with investigators in the northern German city of Luebeck.
The BKA said the four Germans are suspected of fraud and violating securities laws for their role in allegedly pumping up the value of the companies - mostly small fashion, telecom and other businesses - by sending out fake press releases and market notes to gullible investors.
'Shareholders were deceived with the sale of worthless shares and their assets were damaged,' BKA said in its statement. They declined to release any details on the suspects, who remain at large, or the amounts of money involved.
None of the companies were named, but none were part of the major stock exchanges, which are heavily regulated and monitored. -- AP
