SEC Charges California Company, Co-CEOs, and Attorney in Series of Fraudulent Schemes Pumping Company Stock

The SEC charged a purported heart monitoring device company and six individuals involved in a series of fraudulent schemes to artificially inflate the company’s stock. Among those charged are a former pro football player and a former Hollywood executive who were co-CEOs of Heart Tronics. An attorney who masterminded the scheme and brought in nearly $8 million in secret trades was also charged.

In addition to Heart Tronics, and the three individuals, the SEC charged three other individuals involved in the scheme, including the attorney ’s chauffeur and handyman , who carried out the fraud with him. The SEC also charged a stock promoter, as well as the trustee and stockbroker for a number of nominee accounts that the attorney used to unlawfully sell Heart Tronics stock.

In a parallel criminal investigation, the U.S. Department of Justice today announced the arrest of the attorney.

SEC Charges California Company, Co-CEOs, and Attorney in Series of Fraudulent Schemes Pumping Company Stock