Court Enters Consent Judgment In Penny Stock Manipulation Case
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.