Digital Gas, Inc.(fka DIGGQ)

[Buckey]

NJ Man Ordered To Pay $5.2M In Penny Stock Fraud
By The Associated Press 09/30/09 - 01:48 PM EDT Leave a Comment

http://www.thestreet.com/story/10605378/1/nj-man-ordered-to-pay-52m-in-penny-stock-fraud.html

FREEHOLD, N.J. (AP) — A New Jersey man must pay nearly $5.2 million in penalties and restitution stemming from a penny stock fraud case.
More on Mortgages Final Glance: Homebuilders CompaniesBusiness HighlightsMeltdown 101: Are There Too Many Bank Regulators?Midday Glance: Homebuilders CompaniesEarly Glance: Homebuilders CompaniesFinal Glance: Homebuilders CompaniesColony Financial Gets $250M From OfferingMidday Glance: Homebuilders CompaniesEarly Glance: Homebuilders CompaniesIndex Shows Home Prices Increase From June To July A judge in Monmouth County ruled Monday that Brian Smith sold unregistered stock to 200 investors. The judge found the Spring Lake resident issued news releases that manipulated the price and demand for the stock of a company called Digital Gas, which is now in bankruptcy. The judge said the scheme lasted from 1999 to 2007. He also found that Smith and his wife used investor funds for their personal benefit, including mortgage payments and improvements to their home.
Authorities say Digital Gas was a shell company with no real operations. Its Web site claimed it was a business incubator for new technologies in the energy and natural resource fields.