Settlement of SEC Enforcement Action by Former Broker Eugene C. Geiger Concludes Market Manipulation Cases

SEC Litigation Release LR-21831

January 31, 2011

The SEC announced the settlement of a case, initially brought in 2001, in which it alleged that the defendant participated in a scheme to manipulate the stock price of a number of penny stocks by (1) agreeing to secret discounts in privately-arranged share transfers and (2) interposing a straw market maker into the market portion of the transaction, which doubled the reported volume of the trades.

Exchange Act § 10(b)

Exchange Act Rule 10b-5