SEC Charges Former Microcap CEO with Fraud
On November 21, 2016, the Securities and Exchange Commission charged Jason William Kumpf, the former CEO and president of microcap issuer Warrior Girl Corp. and a resident of San Francisco, California, with fraud based on his involvement in the issuance of false and misleading public statements concerning Warrior Girl.
According to the SEC’s complaint, Kumpf, along with two individuals previously charged by the SEC in microcap market manipulation schemes, drafted a press release that Warrior Girl issued on or about July 1, 2010. The complaint alleges that the press release falsely stated that Warrior Girl’s online school was “fully licensed” and forecasted that the school would generate over $2 million the first year, over $8 million the second year, over $27 million the third year, and over $245 million the fifth year. These allegedly false and misleading claims were repeated on multiple promotional internet sites on or about July 1, 2, and 6, 2010.
Without admitting or denying the SEC’s allegations, Kumpf consented to the entry of a final judgment imposing permanent injunctions, requiring him to pay a civil penalty of $10,000, ordering a penny stock bar, and prohibiting him from serving as an officer and director of a public company for a period of five years. The settlement is pending final approval by the court.
The SEC press release can be found HERE.