A New Jersey man must pay nearly $5.2 million in penalties and restitution stemming from a penny stock fraud case.
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.
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