Over two years ago, on an otherwise uneventful Thursday in May 2015, shares of Avon Products suddenly jumped 20% leaving investors stunned. The catalyst was quickly discovered: a filing recently uploaded to Edgar, the SEC’s public filings database and purportedly from London-based ‘PTG Capital’, claimed that the “private-equity” firm was bidding to take Avon private. Upon closer inspection, investors noticed a series of glaring, suspicious errors. For one, the document was riddled the spelling mistakes – the firm’s own name, consisting of a three-letter acronym – was repeatedly misspelled. The address listed for the firm was quickly revealed to be fake. And, as it turned out, there was no PTG capital operating in London – or anywhere, for that matter.
Investors quickly concluded that the filing was a hoax, and Avon shares crashed back to earth. US authorities eventually blamed it on a Bulgarian hacker who the agency claimed earned a meager profit of $5,000 for his efforts.
This post was published at Zero Hedge on Sep 21, 2017.