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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

The SEC suspended trading in 128 inactive penny stock companies to ensure that they don't become sources for pump-and-dump schemes. According to the SEC, the trading suspensions are the latest in a microcap fraud-fighting initiative known as "Operation Shell-Expel," which utilizes technology to scour the over-the-counter marketplace and identify dormant companies ripe for abuse. The SEC explained that once a stock has been suspended from trading, it cannot be relisted unless the company provides updated financial information to prove that it's actually operational. Additionally, it is