8000 Incorporated (EIGH)

[scion]

1. This case involves a scheme to inflate the volume of trading in EIGH's common stock and the company's stock price and to profit from that rise. In October 2009, Bryant acquired control o fEIGH and appointed Kelly its Chief Executive Officer ("CEO"). He also retained Duncan as the company's securities counsel. Working together over a twelve month period, the Defendants increased the company's stock price as they sold the company's restricted securities into the market.

2. The Defendants' scheme had two facets which they executed simultaneously. One facet involved Bryant's and Kelly's dissemination of financial reports and press releases falsely reflecting that EIGH had millions of dollars in capital and revenues. The other facet involved Duncan supplying OTC Markets Group, Inc. ("OTC Markets") and EIGH's transfer agent with false legal opinions. The opinions that Duncan provided OTC Markets assured that EIGH's common stock was quoted in a central market widely available to investors. The opinions that he provided the transfer agent enabled Bryant to acquire stock certificates without restrictive legends for EIGH's restricted securities, thereby allowing Bryant to sell 56.8 million EIGH shares into the market that he could not have otherwise sold.

3.The Defendants' combined efforts increased the volume of trading in EIGH by 93% between November 2009 and October 2010, and the company's stock price from less than $0.01 to $0.42 per share. Further, Bryant and Kelly earned substantial profits through the scheme. Bryant paid Duncan more than $15,000 from his trading profits for Duncan's services. Bryant also gave one million shares ofEIGH's common stock to Duncan. The Commission issued an order on November 4, 2010, suspending trading in EIGH's securities.

4. By engaging in the scheme to increase the volume of trading in EIGH's securities and the company' stock price, Defendants violated the antifraud provisions ofthe federal securities laws. Bryant and Duncan also violated the securities registration provisions of the federal securities laws by participating in the sale of EIGH's restricted securities.

SEC Complaint
http://www.sec.gov/litigation/complaints/2012/comp22495.pdf