Court Enters Consent Judgment In Penny Stock Manipulation Case
Yesterday, the SEC announced that the U.S. District Court for the District of Delaware entered a consent judgment in a penny stock manipulation case brought by the SEC against Richard A. Bailey, a former officer of GH3 International, Inc. The SEC’s complaint alleges that Bailey participated in a pump-and-dump scheme involving GH3’s common stock, generating more than $700,000 of illicit proceeds for Bailey and seven other named defendants involved in the fraudulent scheme.
Without admitting or denying the allegations, Bailey consented to the entry of a judgment permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 5 and 17(a) of the Securities Act of 1933; barring him from participating in any offering of a penny stock; and barring him from serving as an officer or a director of a public company. The judgment provides that upon subsequent motion by the SEC the Court will determine issues relating to monetary relief.
Learn more HERE.