EC charges two Canadians in pump-and-dump scheme
7 hours ago - Reuters
By Jonathan Stempel
NEW YORK (Reuters) - U.S. regulators have sued two Canadians for running an alleged pump-and-dump scheme in which they sold several millions dollars of shares in a "profitless" penny-stock company for their own profit.
The U.S. Securities and Exchange Commission filed a lawsuit in New York federal court accusing Jay Budd of Toronto and John Briner of Surrey, British Columbia of fraud in connection with the company, Golden Apple Oil & Gas Inc <GAPJ.PK>.
The SEC wants the defendants to give up illegal profits, pay civil fines and agree to other remedies.
According to Monday's complaint, from the fall of 2004 through May 2006 the defendants illegally sold stock and issued false and misleading press releases about Golden Apple's success, first as a seller of home warranties and then as an oil and gas exploration company.
Budd was Golden Apple's chief executive and formed Ethos Investments Inc, a Scottsdale, Arizona-based firm involved in the scheme, while Briner provided legal services for Golden Apple, the SEC said.
The complaint said Briner arranged an initial offering of 5 million shares, and then with Budd and Golden Apple conducted several subsequent offerings that resulted in sales to the public at inflated prices. It said Ethos generated more than $3 million from its illegal sales.
Briner did not immediately return a call to his home for comment. Budd could not immediately be located for comment. Harry Miller, whom the SEC said represents Ethos, could not immediately be reached for comment. It was not clear whether the defendants have retained counsel.
Golden Apple was incorporated as CDI Developments Inc, and later changed its name to Home Warranty Services of America Inc and then to Golden Apple, the complaint said.
The case is SEC v. Golden Apple Oil and Gas Inc, U.S. District Court, Southern District of New York (Manhattan), No. 09-7580.
(Reporting by Jonathan Stempel; Editing by Derek Caney)
для тех кто держит деньги или думает инвестироваться in penny stocks, % 90 что ви их потеряете.......
