SEC Alleges Lawyers Gave Fraudulent Opinions
Last update: 5/5/2009 1:11:08 PM
DOW JONES NEWSWIRES
The Securities and Exchange Commission on Tuesday charged two attorneys and a third person with preparing and issuing fraudulent legal opinions that enabled promoters to sell shares in an alleged illegal pump-and-dump scheme.
Katherine S. Addleman, an agency regional director, said the trio operated "a legal opinion mill of fraudulent letters that misrepresented critical facts and cited to non-existent documents."
The SEC alleged that attorneys Albert J. Rasch, Jr. and Kathleen R. Novinger together with Sandra B. Masino and her company 144 Opinions, Inc. wrote at least 24 opinion letters that contained false statements.
The opinions aided an alleged pump-and-dump scam at Mobile Ready Entertainment Corp. (MRDY), an Alpharetta, Ga., wireless content provider, the SEC said. In 2008, the SEC charged Mobile Ready and two of its officers with illegally touting the company's stock.
Lawyers for Rasch and Novinger couldn't be reached immediately, and a lawyer for Masino declined to comment.
-By David J. Reynolds; Dow Jones Newswires; 202-862-1342; david.reynolds@dowjones.com
(END) Dow Jones Newswires
May 05, 2009 13:11 ET (17:11 GMT)
