Federal authorities file charges against thirteen individuals for penny stock fraud
BBR Staff Writer Published 02 December 2011
The Securities and Exchange Commission (SEC), US Attorney for the District of Massachusetts, and FBI have brought charges against 13 individuals for using kickbacks in the loosely regulated world of microcap stocks.
The SEC suspended trading in seven companies that allegedly participated in the kickback-for-investment scheme.
The SEC also filed a civil case against four people, alleging they used kickbacks to manipulate trading in microcap or penny stocks.
The seven firms suspended were Las Vegas-based 1st Global Financial, Houston-based Augrid Global Holdings, Pennsylvania-based ComCam International, Washington-based MicroHoldings US, Florida-based Outfront Companies, Massachusetts-based Symbollon Corp./Symbollon Pharmaceuticals and Massachusetts-based ZipGlobal Holdings.
SEC said if convicted, the defendants charged with mail fraud and wire fraud each face up to 20 years in prison and a $250,000 fine on each count and if convicted on the conspiracy to commit securities fraud charges, the defendants each face up to five years in prison and a $250,000 fine on each count.
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#2). You want easy money. So does everybody else. They'll get it, too....yours! (and all of it!)
#3). You tell yourself you're smart. You won't lose your money. Fact: Other people are smarter,
