Yeah, I actually knew of a guy that used to do this on low volume stocks on the NYSE, back when trading was still in fractions. Luckily he did not get dinged for it because it is a no-no on the exchanges.

That is one of the only positives of regulation is that you have a body governing the transactions to stop crap like this. The free market will eventually sniff and snuff this people out as well, but many people that are non the wiser will fall victim to this before that time comes.