Bulgaria Police Arrest Man Sought by US over Stock Fraud

A Bulgarian man suspected by the United States of involvement in a stock scam has been detained and indicted in Bulgaria, local and US media outlets report.

Nedko Nedev, 38, is a dual Bulgarian-US citizen who allegedly launched fake buyout bids for Avon Products and Rocky Mountain Chocolate Factory.

According to USA today, citing federal prosecutors, he has already been arrested and indicted on charges of market manipulation and insider trading.

"His alleged sham takeover offer for Avon last May caused a 400% increase of the average per-day trading volume in the cosmetic company's shares and resulted in hundreds of millions of dollars in market manipulation," the US daily writes, citing Manhattan U.S. Attorney Preet Bharara's office said.

Reuters reports that US authorities will try to have him extradited so that he can be indicted with six counts of fraud and two of identity theft.

The case was first reported last summer.

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