How a 13-Year-Old Made $800K with Stock Hype (And Why You Can’t Repeat It)

Early Background

When Jonathan Lebed was 13, most kids his age were focused on video games and school projects. He was already obsessing over stock charts. Born in 1984 to a middle-management father and a secretary mother in Cedar Grove, New Jersey, he learned market talk at the dinner table. His father, a part-time trader, shared wins and losses openly, sparking Jonathan’s curiosity.

By 12, Jonathan convinced his dad to front him $8,000 as a birthday gift. He bought America Online shares at $25 apiece and, within two weeks, flipped them for a $5-per-share gain. That early win fueled a deeper dive into financial websites, message boards, and chatrooms.

Building Stock-dogs.com

In late 1999, without any formal training, Jonathan launched Stock-dogs.com, a simple site showcasing thinly traded stocks. He posted snippets of research, tips, and price charts, and leveraged Yahoo! Finance forums to drive traffic. Within months, he attracted 1,500 daily visitors, all hungry for his picks.

He recycled profits from each campaign back into more shares, creating a feedback loop: small purchases, public promotion, hype, price spike, sell, repeat. He managed this while attending school full-time, sending out email blasts before classes and writing dozens of comments on forums each morning.

The Hype Machine

Jonathan set up multiple fake online personas to post bullish takes, favorable news, and whispered tips. Followers snapped up the promoted stocks, driving up prices on thinly traded issues. Jonathan, holding a small stake, sold into the frenzy. Between September 1999 and February 2000, he ran 27 such campaigns, netting $800,000 total.

SEC Showdown and Settlement

At 15, Jonathan caught the SEC’s eye. Rather than admit guilt, he mounted an online defense, claiming innocence and calling himself just another trader. Public support grew. Pressured, the SEC settled in September 2000: he repaid $272,826 plus interest but kept $515,000 where fraud couldn’t be proven.

Legacy and Lessons

Jonathan’s story reveals how early internet naiveté allowed a teen to outsmart regulators. Today’s markets, surveillance tools, and savvy investors make such a scheme nearly impossible. His case underscores the power of online influence, timing, and the thin line between legal research and manipulation.