CyberKey Solutions fka CKYS

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Lawyer for St. George company sued for insider trading

The Salt Lake Tribune
Updated: 11/06/2009 04:08:39 PM MST
http://www.sltrib.com/business/ci_13731274

A former attorney for a St. George company has been sued for insider trading for selling shares after he learned the company was under investigation.

The Securities and Exchange Commission filed suit in federal court in Florida against J. Bennett Grocock, the former attorney for CyberKey Solutions.

Grocock made at least $170,000 selling shares of CyberKey after he became aware of the SEC was in investigating the company. The investigation ended when CyberKey's CEO was arrested and charged with criminal fraud and sued by the SEC.

Grocock consented to an injunction barring him from future securities violations, the SEC said last week. No financial penalties were imposed.

CyberKey's former president and CEO, James E. Plant, is in prison after pleading guilty.

A complaint filed in March 2007 in Pennsylvania said Plant, "engaged in an elaborate scheme to publicize a fictitious $25 million purchase order from the U.S. Department of Homeland Security and other false claims to attract interest in CyberKey."

CyberKey, which purported to sell flash memory drives and other devices, received at least $1.5 million after issuing hundreds of millions of shares of stock, according to the SEC lawsuit.

According to court documents, Plant "engaged in rather extravagant spending patterns, including the purchase of expensive cars and vacations."

Plant pleaded guilty to four charges and was sentenced to 97 months in prison.

http://www.sltrib.com/business/ci_13731274