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Tuesday, June 07, 2011 12:28:02 PM
“They may be called ‘penny stocks,’ but victims of microcap fraud can suffer devastating losses,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “The SEC’s new Microcap Fraud Working Group is targeting the insiders and promoters, as well as the transfer agents, attorneys, auditors, broker-dealers, and other “gatekeepers” who flourish in the shadows of this less-than-transparent market.”
"Questions have arisen concerning the adequacy and accuracy of press releases concerning the company’s operations, the accuracy of its financial statements, and stock promoting activity by the company ... "
http://sec.gov/litigation/suspensions/2011/34-64612-o.pdf
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