Last week, the Securities and Exchange Commission brought additional charges against a Long Island, New York-based boiler room previously sued for defrauding elderly and unsophisticated investors. The latest charges allege that First Choice Healthcare Solutions Inc. CEO Christian Romandetti, the boiler room, and four others, manipulated the company’s shares generating more than $3.3 million of illegal profits and more than
Read more
A new article in S&P Global Market Intelligence by Declan Harty discusses “How OTC Markets fights stock fraud enabled by ‘fake news’.” The article highlights how technology has made it easier for fraudsters to implement “pump and dumps” of OTC stock, listed securities, crypto currencies, and more. “Technology certainly transformed the stock promotion business,” said John Reed Stark, a cybersecurity consultant who
Read more
Yesterday, the SEC announced that is has obtained a final judgment against a former boiler room operator charged with participating in a fraudulent scheme to artificially inflate the per share price of penny stocks. The SEC’s complaint alleged that in 2010, an owner of penny stocks, James Price, proposed to a stock promoter, Brian Kingsfield, that they engage others to
Read moreYesterday, the SEC brought fraud charges against 13 individuals allegedly involved in two Long Island-based cold calling scams that bilked more than one hundred victims out of more than $10 million through high-pressure sales tactics and lies about penny stocks. The SEC alleges that the orchestrators of the scheme used boiler room-style call centers to make hundreds of thousands of cold calls
Read more