The partner, billionaire Peter Kellogg once the most powerful man on the New York Stock Exchange and ranked the 95 th richest person in America allegedly bought and sold millions of Thoratec Corp. shares for four accounts he and his family controlled, all at prices not related to supply and demand. This, the allegations contend, created the illusion that the stock was experiencing heavy volume when in fact the movement was all Kelloggs doing.
NASD charges that the "washed" trades took place in the first two weeks of August 2001. Kellogg has reportedly told NASD the trades were not illegal, but made to offset non-tax capital gains.
Kellogg is said to have been motivated to pump up the prices of the heart-pump company stock in which he children owned shares.