I know that those of you who follow my blogs and attend my webinars hear me state that I follow the SEC litigation website. Here is one that I thought some of you might be interested in. I am truly amazed in the number of scams that I see the SEC going after. Tons and Tons of money that has been invested by trusting people. I guess the name of this blog sez it all.
Litigation Release No. 21817 / January 14, 2011
SEC v. Christopher Wheeler, et al., Civil Action No. 11-CV-0289 (GBD) (S.D.N.Y. January 14, 2011)
SEC v. Christopher Wheeler, et al., Civil Action No. 11-CV-0289 (GBD) (S.D.N.Y. January 14, 2011)
On January 14, 2011, The Securities and Exchange Commission charged an upstate New York-based penny stock promoter and his affiliated website with fraud for failing to disclose that he was paid by certain issuers to promote their stock while simultaneously liquidating millions of his own shares for profits of at least $2.95 million.
The SEC alleges that Christopher Wheeler of Victor, N.Y., received compensation at various times in 2007 and 2008 to promote several thinly-traded penny stocks on his website, OTCStockExchange.com. Wheeler’s website claimed to “have compiled a long list of successful stock picks” and to afford investors the opportunity to “make a fortune.”
The SEC alleges that after receiving millions of shares in undisclosed compensation from the issuers, Wheeler featured the issuers’ stock on OTCStockExchange.com, recommended that investors purchase the securities, and posted lofty price predictions for the stock without any reasonable basis for those projections. Wheeler’s and OTCStockExchange.com’s promotional efforts often resulted in dramatic, but temporary, increases in the volume of shares traded and the price of the issuers’ securities. Once the prices were pumped in this manner, Wheeler simultaneously dumped shares from his personal brokerage account onto the market.
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