Saturday, January 13, 2018 11:15:20 AM
Case 4: Companies Touted by MicroCap Marketing, Inc., Lorsin, Inc., Russell Management, Inc. and Harold Engel, Jr.
Finally, the Commission instituted two more related administrative proceedings, one proceeding against two publicly traded companies, Energy & Engine Technology Corporation (“Energy & Engine”) of Plano, Texas and Houston-based ProActive Computer Services, Inc. (“Proactive”). Both of these respondents settled the proceeding without admitting or denying the findings in the Commission’s Order.
In the related matter, the Commission instituted proceedings against Lorsin, Inc., Loretta M. Lockhart (“Lockhart”), Craig K. Hjalmarson (“Hjalmarson”), Russell Management, Inc. (“Russell Management”), George R. Siembida (“Siembida”), Harold Engel, Jr. (“Engel”). MicroCap Marketing, Inc. (“MicroCap Marketing”), and Shane M. Nelson (“Nelson”).
According to the Commission’s Orders, Energy & Engine, which maintains a natural gas gathering system, hired former stock promoter Siembida, of Depew, New York, and his company, Russell Management, to promote Energy & Engine on the Internet. Energy & Engine paid Siembida in stock that was improperly registered pursuant to a Form S-8 Registration Statement. (Form S-8 registration is not available for stock issued as compensation for stock promotion services.) Siembida subcontracted with Engel, who operates a small cap stock promotion website, WillyWizard.com, to promote Energy & Engine. To compensate Engel, Siembida transferred some of the shares he received from Energy & Engine to Engel.
The Commission’s Orders allege that Engel, in turn, subcontracted with two other promoters, Hjalmarson and Nelson, to profile Energy & Engine on the Internet. Hjalmarson, of Kill Devil Hills, North Carolina, operates a website, GreedOrFear.com, through a corporation named Lorsin, which is headed by Lockhart, also of Kill Devil Hills. Nelson, of Bethany, Illinois, heads MicroCap Marketing, which promotes small cap companies on the Internet. Engel paid Hjalmarson and Nelson with a portion of the Energy & Engine shares he received from Siembida.
The Commission’s Orders further allege that Engel and Nelson touted Energy & Engine on their websites, and that Hjalmarson distributed Energy & Engine press releases over the Internet. The promotion coincided with a 68 percent rise in the price of Energy & Engine’s stock, from $0.29 to $0.49 per share, and average daily trading volume that was over 600% higher that the stock’s historical daily volume. Siembida, Engel, Hjalmarson, and Nelson sold the stock that they had received for a combined total of over $14,000.
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM