Tag Archives: Enforcement

SEC Obtains Judgment Against Penny Stock Promoter

Last week, the SEC announced that they obtained a judgment against a penny stock promoter in connection with multiple pump-and-dump schemes. On November 17, 2014, the SEC charged Jay Fung and two others with orchestrating schemes to manipulate five penny stocks between November 2009 and September 2010. The complaint alleged that, as part of the manipulative scheme, Fung and the

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SEC Charges Microcap Fraudsters And Billionaire for Roles in $27 Million Market Manipulation Schemes

Last Friday, the Securities and Exchange Commission charged a group of 10 individuals and 10 associated entities for their participation in long-running fraudulent schemes that generated over $27 million from unlawful stock sales and caused significant harm to retail investors who were left holding virtually worthless stock. According to the SEC’s complaint, from 2013 to 2018, a group of prolific

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SEC Charges Attorney With Illegal Sales of Blockchain Company’s MicroCap Stock

On Monday, the Securities and Exchange Commission charged two men alleged to have profited from illegal sales of stock of a company claiming to have a blockchain-related business. According to the SEC’s complaint, attorney T.J. Jesky and his law firm’s business affairs manager, Mark F. DeStefano, made approximately $1.4 million by selling shares in UBI Blockchain Internet Ltd. over a

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SEC Files Fraud Charges In MicroCap Shell Scheme

Last week, the SEC filed fraud charges against Niel Nielson for his role in orchestrating a microcap fraud at E-Waste Systems, Inc (EWSI). According to the SEC, Nielson, who was the CEO, President, and sole director of EWSI, issued frequent false and misleading statements in press releases and public filings to create the false impression that EWSI was expanding quickly across the world

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SEC Foils NanoCap Executive’s Pump & Dump

Last Friday, the SEC barred the president of a penny stock company from ever again serving as a public company officer or director after he was caught making false and misleading statements about the company to investors in an effort to increase demand for the stock. The SEC confronted him quickly and the misstatements were removed from the Internet and social

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FBI Arrests “Mailman” for Penny Stock Scalping Scheme

On Friday, the SEC charged a penny stock promoter based in Florida with defrauding investors in a pair of gold mining stocks by secretly amassing shares before touting the companies publicly. He allegedly sold the bulk of his stock and reaped more than $1.1 million in illicit profits after his promotions caused the share prices and trading volumes to skyrocket. The

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SEC Charges U.K. Brokerage Firm and Others for Manipulative Trading in U.S. MicroCap Stocks

On Friday, the Securities and Exchange Commission announced securities fraud charges against a U.K.-based broker-dealer and its investment manager in connection with manipulative trading in the securities of HD View 360 Inc. (OTC: HDVW), a U.S.-based microcap issuer. The SEC further announced the institution of an order suspending trading in the securities of HD View. The SEC also announced charges against

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SEC Obtains Final Judgment Against Former Boiler Room Operator

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

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SEC Files Fraud Charges Against Microcap Company and Its CEO

On Monday, the Securities and Exchange Commission charged a microcap company and its CEO with conducting a fraudulent scheme to mislead investors about the company’s success and prospects, hide its losses, inflate the value of its assets, and artificially prop up its stock price. The SEC’s complaint, filed on December 4, 2017, alleges that Premier Holding Corp. (OTCQB: PRHL), a

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SEC Charges ‘Penny Stock’ Operators With Defrauding Elderly Investors

Last week, the Securities and Exchange Commission charged two individuals with defrauding elderly investors in a penny stock scheme involving Florida entertainment companies and their “Spongebuddy” product. The SEC’s complaint charges Joseph A. Rubbo and Angela Beckcom Rubbo Monaco with defrauding investors through offerings by their companies VIP TV LLC, VIP Television Inc., and The Spongebuddy LLC. Rubbo and Monaco are

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