SEC Charges Investment Firm with Illegally Dumping Billions of Penny Stock Shares

SEC Litigation Release

The SEC announced the filing of a civil action against a firm for its alleged dumping into the market shares of penny stocks which it acquired from issuers at deep discounts under the pretense of a long-term investment. The SEC complaint alleges that the practice amounted to public stock distributions in violation of section 5 of the Securities Act.

Document Number

SEC LR-21798

Date

January 6, 2011

Cross References (links may require a Cabinet subscription)

SEC PR 2011-1

SEC Complaint

Securities Act § 5