Tag Archives: Penny Stocks

Is The End Of The Penny Stock Market Imminent?

In September, Bank of America banned trades of all microcaps with stock prices under $5. For some, this signaled the end of the penny stock market and prompted Richard Levick to share an article on Frobes.com titled “The End Of The Penny Stock Market Could Be Imminent.” According to Levick, “If enough other financial institutions follow suit, the penny stock

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Former CEO Barred From Penny Stock Offerings For Stock Manipulation In Attempt To Uplist To Nasdaq

A federal district court in Jacksonville, Florida has barred the former CEO of a Florida-based franchisor of children’s educational programs from serving as an officer or director of a public company and from participating in penny stock offerings. The Securities and Exchange Commission charged Brian Pappas, the former CEO of Creative Learning Corp., in August 2017 with fraud for making

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Bank of America Bans Trades of All MicroCaps With Shares Under $5

According to CNBC, Bank of America’s Merrill Lynch brokerage recently told clients it was changing its trading policy regarding penny stocks. CNBC’s sources say Merrill Lynch banned purchases of ‘penny stocks’ in late July, and added restrictions to sales in September. As of September 30th,  stocks priced under $5 per share from companies with a market capitalization under $300 million will be

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SEC Settles Charges Against Brokerage Firms For Failing To Report Suspicious Sales Of Penny Stocks

Last week, the Securities and Exchange Commission announced settled charges against broker-dealers Chardan Capital Markets LLC and Industrial and Commercial Bank of China Financial Services LLC (ICBCFS) for failing to report suspicious sales of billions of penny stock shares. Broker-dealers are required to file Suspicious Activity Reports (SARs) for transactions suspected to involve fraud or with no apparent lawful purpose.

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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

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Former Stock Broker Sentenced for Microcap Stock Manipulation Scheme

Last week, a former New Hampshire stockbroker was sentenced for his role in a market manipulation scheme which was actually part of an undercover operation. Robert Raffa, 57, of Penacook, N.H., was sentenced by U.S. District Court Chief Judge Patti B. Saris to two years in prison and two years of supervised release. In September 2017, he pleaded guilty to one

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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 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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SEC Enforcement Division’s Report on Priorities and FY 2017 Results Make Limited MicroCap Mentions

Earlier this month, the SEC Enforcement Division issued a report highlighting its priorities for the coming year as well as a review of enforcement actions that took place during FY 2017. In the report, Co-Directors Stephanie Avakian and Steven Peikin stated their overall enforcement approach: “Vigorous enforcement of the federal securities laws is critical to combat wrongdoing, compensate harmed investors,

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