SEC Goes after Penny Stock Schemes

The SEC announced the latest charges in a series of cases involving microcap companies, officers and promoters arising out of a joint law enforcement investigation to unearth penny stock schemes.

The SEC charged five penny stock promoters with conducting various manipulation schemes involving undisclosed payments to induce purchases of a microcap stock to generate the false appearance of market interest.

See: SEC Complaint - Altomare; SEC Complaint - Berkowitz; SEC Complaint - Brown; SEC Complaint - McKnight and Bauer; SEC Complaint - Urban AG and Ray and Clark.Related news: FINRA Brings AML Action in Connection with Sales of Penny Stocks (February 5, 2014).