SEC Charges Stock-Based Lender with Selling Penny Stock Shares as Unregistered Broker-Dealer

The SEC charged the executives of International Capital Group ("ICG") with selling penny stocks through purported stock-based loans, block trades and other transactions, without registering with the SEC as a broker-dealer.

The SEC alleged that ICG made nonrecourse loans to an owner of the stock, who was an affiliate of the issuer, then foreclosed on the loan and distributed the stock at a sale price greater than the loan amount.

See: SEC Order.