US financial regulators said they had uncovered a fraudulent $1 million Internet securities scheme they alleged was run by a high school student.
Cole Bartiromo (17) allegedly defrauded 1,000 investors through a website and Internet bulletin board that promised guaranteed and risk-free investments, the Securities and Exchange Commission (SEC) said in a statement.
Bartiromo, who lives with his parents in Mission Viejo, California, has settled the case and agreed to turn over about $900,000 of investor money he had transferred into an account he controlled at a Costa Rican casino, the SEC said.
Further litigation is pending regarding civil penalties, the SEC said.
His lawyer did not immediately return calls for comment.
The website promised exorbitant returns on short-term investments, including a "Christmas Miracle" programme that promised a return of 2,500 per cent for money invested between November 10th and December 15th last year, the SEC said in its complaint.
The investment was to pool investor funds to place "safe bets" on three online sportsbooks, the SEC said. Potential investors sent their money through Internet payments services such as PayPal and Osgold, according to the SEC.
Two years ago, the SEC accused Jonathan Lebed (15) of using the Internet to manipulate stock prices, saying the teenager touted the stock of small companies by posting notes on message boards on well-known websites.