SEC Charges Career Microcap Shell Promoter

 

Today, the Securities and Exchange Commission announced that on December 19, 2016, it charged Edward F. Panos with defrauding investors by orchestrating a shell factory and promotional scheme in various microcap issuers, including E-Waste Systems, Inc.

According to the SEC’s complaint, Panos illegally concealed his control and ownership of shell companiesthat he created, took public, and sold for hundreds of thousands of dollars by acting through figurehead CEOs and failing to disclose his significant beneficial ownership, which he hid in accounts not bearing his name.

According to the SEC, after selling a controlling interest in the public shells, Panos, who continued to hold shares in the companies, generated interest in the companies through paid promotional campaigns and, after the stock rose, he sold his remaining shares.

Panos worked with a network of professionals, including attorneys, accountants, brokers, and promoters, and other business associates to carry out this scheme across various microcap issuers.

The SEC’s complaint also names Allison Panos, Panos’ wife, as a relief defendant for the purpose of recovering ill-gotten gains in her possession.

Without admitting or denying the SEC’s allegations, Panos consented to entry of a final judgment imposing permanent injunctions and agreed to pay disgorgement of $1,437,503, plus prejudgment interest of $345,000, and a civil penalty of $1,437,503.

Panos also agreed to be barred from serving as an officer and director of a public company and a penny stock bar, and a prohibition on causing or deriving any compensation from the promotion, advertising, endorsing, or marketing of any issuer of any penny stock. 

Read the full SEC press release HERE

Tags:

SEC

Securities and Exchange Commission

MicroCap Fraud

MicroCpa Shell

Shells

public shells

Shell status

Edward F. Panos

Enforcement

stock promotion

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