Energy One Corp (EGOC)

[sunspotter]

Raymond T Brown II's good ol' buddy "ex"-EGOC company director Ian Morrice - and EGOC company founder and "ex" VP of IR Jean François Amyot - have been charged with Securities Fraud by SEC.

That may explain last week's sudden exodus of previous EGOC supporters, as you can be sure that EGOC is similarly under the SEC microscope:

"PRELIMINARY STATEMENT
1. This enforcement action concerns a "pump-and-dump" scheme whereby defendants artificially "pumped" up the price of a publicly-traded company through the
dissemination of false positive information about the company, after which they "dumped" the
stock into the marketplace to take advantage of the artificially high stock price. The scheme in
this case involved Spencer, a purported pharmaceutical company with addresses in Boston,
Massachusetts, and in Canada. The scheme was orchestrated by Amyot, who was an officer of
Case 1:12-cv-12334 Document 1 Filed 12/17/12 Page 2 of 41
Spencer until November 2009 and then continued to exercise control over the affairs of the
company. Amyot was assisted by Arella and Morrice, who became officers and directors of
Spencer in November 2009, and together they effected the "pump" of Spencer's stock price by
disseminating false information about Spencer through two public relations companies that
Amyot controlled (lAB Media and Hilbroy).
2. The "pump-and-dump" started in June 2010 and accelerated in November 2010,
when Spencer began issuing a string of false and misleading press releases claiming that it had
received an unsolicited buyout offer from a Mideast company. Arella and Morrice worked with
Amyot to create and disseminate the misleading press releases. While Spencer was issuing the
press releases, Amyot, Arella, Morrice, lAB Media, and Hilbroy were conducting a promotional
campaign using internet websites and newsletters to tout Spencer and the buyout offer. When
Spencer announced on November 11, 2010 that the Mideast company proposed to pay $0.97 per
share- or $245 million- for the company, the price of Spencer stock more than doubled in two
days - opening at $0.25 per share on November 1 0 and closing at $0.60 per share on
November 12. The daily trading volume skyrocketed as well, reaching almost six million shares
traded on November 11, 2010, compared to a daily average ofless than 50,000 shares during the
previous three months.
3. The proposed buyout offer was pure fiction, but Amyot's profits from dumping
Spencer stock were very real. Between November I, 2010 and April 18, 2011, Amyot sold
approximately 36 million Spencer shares for gross proceeds of more than $5.8 million. Amyot
and Arella also orchestrated the deposit of 12 million Spencer shares into an account controlled
by Amyot through a series of transfers done to evade restrictions and securities registration
2
Case 1:12-cv-12334 Document 1 Filed 12/17/12 Page 3 of 41
requirements.
4. Through the activities alleged in this Complaint, (1) all the defendants engaged in:
(a) fraud in the offer or sale of securities, in violation of Section 17(a)(l) and (3) of the Securities
Act of 1933 ("Securities Act"), and (b) fraudulent or deceptive conduct in connection with the
purchase or sale of securities, in violation of Section lO(b) of the Securities Exchange Act of
1934 ("Exchange Act") and Rules 10b-5(a) and (c) thereunder; (2) Spencer, Amyot, Arella and
Morrice engaged in: (a) fraud in the offer or sale of securities, in violation of Section 17(a)(2) of
the Securities Act, and (b) fraudulent or deceptive conduct in connection with the purchase or
sale of securities, in violation of Section lO(b) of the Exchange Act and Rule 10b-5(b)
thereunder; (3) Arella, Morrice, lAB Media, and Hilbroy aided and abetted Spencer's violations
of Section 17(a) of the Securities Act, Section IO(b) of the Exchange Act, and Rule IOb-5;
(4) Amyot had control person liability for Spencer's violations of Section IO(b) of the Exchange
Act, and Rule IOb-5; and (5) Spencer, Amyot, and Arella engaged in the sale of unregistered
securities in violation of Sections 5(a) and 5(c) of the Securities Act."

http://www.sec.gov/litigation/complaints/2012/comp22574.pdf