The SEC has been increasing its focus on pump-and-dump cases, so going after shells is a way to get at the source, Stoltmann says. For a relatively small amount of money, fraudsters can accumulate shares of a defunct company still trading on a lightly regulated marketplace like the OTC Pink system. The fraudster can then set up phony operations, put out misleading press releases, lure buyers, and, once the stock price rises, dump the shares for a profit.