Study each of the following case carefully. Briefly state the principle of law and your decision.

Jonathan G. Lebed was a 15-year-old Internet maven who, over about a six-month period, on 11 separate occasions “engaged in a scheme in which he purchased large blocks of thinly traded stocks and, within hours of making such purchases, sent numerous false and misleading messages over the Internet touting the stocks that he had just purchased.” Lebed sold these shares, usually by the next day. From these activities he realized a total profit during the period of $272,826. Is Lebed guilty of violating the securities laws?