SEC Freezes $1.2 Million In Assets From Two Chinese Citizens For Illegally Selling Penny Stock Shares
On Monday, The Securities and Exchange Commission charged two Chinese citizens with illegally selling more than 2.3 million shares of of Immage Biotherapeutics Corp. (IMMG) for net profits of over $1.8 million.
According to the SEC’s complaint filed in U.S. District Court for the Southern District of New York on April 26, 2017, Wensheng Lin and Sheng Li Chen acquired over 8.4 million shares of Immage Biotherapeutics Corp. (IMMG) at $0.0037 per share, or just over $31,000. Lin and Chen allegedly sold their shares for as much as $1.4745 and $1.1286 per share, collectively earning net profits of more than $1.8 million.
According to the SEC, no registration statement was filed or in effect covering Lin’s or Chen’s sales, and no exemption from registration was available.
Also according to the SEC, the majority of Lin and Chen’s profits derived from sales that occurred after promotional websites began touting IMMG. The SEC alleges that the touting claims on those promotional websites were, at a minimum, materially misleading.
The SEC suspended trading in IMMG on April 4, 2017. Prior to its suspension, IMMG wqas traded on the OTC’s PINK tier.
Learn more HERE.