Wednesday, March 14, 2012

SEC Charges CEO of Las Vegas-Based Penny Stock Company and Several Consultants in Pump-and-Dump Scheme

A Las Vegas-based food and beverage company and its CEO has been charged by the SEC with conducting a fraudulent pump-and-dump scheme. In addition, eight consultants for their illegal sales of company shares into the markets. Prime Star Group Inc. and it's CEO issued false and misleading press releases that touted lucrative agreements for the company’s food and beverage products. Also , certain Prime Star reports filed with the SEC understated the company’s net losses or overstated its cash balance. The SEC alleges that these fraudulent promotional activities caused Prime Star’s stock price and trading volume to increase markedly.

In June 2011 trading was suspended in Prime Star by the SEC.

SEC Charges CEO of Las Vegas-Based Penny Stock Company and Several Consultants in Pump-and-Dump Scheme
Post a Comment