This week, The Securities and Exchange Commission charged David M. Loflin for his role in a pump-and-dump scheme in the stock of Greenway Design Group, Inc., a Phoenix, Arizona company that was secretly controlled by Loflin’s now-deceased business partner. According to the SEC’s complaint, in 2013, Loflin helped his business partner gain control of Greenway, using a front company to
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This week, The Securities and Exchange Commission has obtained final judgments against a microcap company and its two undisclosed promoters who were charged with running a $3.3 million microcap fraud. In September 2017, the SEC charged Jason McDiarmid, Kenneth George Cedric Telford, and Stop Sleep Go, Inc., formerly known as Interactive Multi-Media Auction Corp, with running a pump-and-dump scheme in
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The Securities and Exchange Commission filed a subpoena enforcement action against three penny-stock companies and their CEO – Cherubim Interests, Inc. (CHIT), PDX Partners, Inc. (PDXP), Victura Construction Group, Inc. (VICT), and Patrick Jevon Johnson – seeking an order directing them to comply with investigative subpoenas for documents. According to the SEC’s application, filed on December 21, 2018 in U.S.
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Yesterday, two South Florida men agreed to lifetime bars from participating in penny stock offerings to settle charges brought by the Securities and Exchange Commission alleging that they facilitated a pump-and-dump scheme involving shares of a Sunrise, Florida company that purported to be in the beauty products business. The SEC alleges that attorney Mark E. Fisher of Boca Raton, Florida
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On Tuesday, the CEO of a microcap company that claimed to own valuable patented drug delivery technology was sentenced in federal court in Boston in connection with a scheme to manipulate the market for his company’s publicly traded stock. Learned Jeremiah Hand, 59, of Durham, N.C., was sentenced by U.S. District Court Chief Judge Patti B. Saris to nine months
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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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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
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Last week, ex-lawyer Diane Dalmy was sentenced by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme. According to court documents and statements made in court, Dalmy, a former attorney, performed securities-related legal work on behalf of several public companies,
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Last week, the Securities and Exchange Commission announced charges against Wedbush Securities Inc. for failing to supervise employee Timary Delorme after the broker-dealer ignored numerous red flags indicating that Delorme was involved in a long-running pump-and-dump scheme targeting retail investors. Delorme agreed to settle fraud charges stemming from the same scheme. This is the second SEC action against Wedbush this
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