MicroCap Pot Stock Charged with Scheming Investors by SEC
The SEC says that its investigation revealed that William J. Sears and his brother-in-law, Scott M. Dittman, illegally sold restricted stock into the market for $12.2 million in profits.
Ditman was the CEO and sole officer at Fusion Pharm Inc. at the time. In addition to illegal stock sales, Sears also transferred some of his illegal proceeds back to Fusion Pharm so the money could be falsely reported as revenue, and the company issued press releases and financial reports that misled investors.
Sear, Dittman, and Fusion Pharma agreed to settle the SEC’s charges with monetary sanctions to be determined at a later date. Sears and Dittman were barred from participating in any future penny stock offerings, and from serving as an officer or director of any public company. Dittman also was permanently suspended from appearing and practicing before the SEC as an accountant, which includes not participating in the financial reporting or audits of public companies.
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