SEC Obtains Summary Judgment Win On Liability Against All Defendants in a Penny Stock Fraud Case, March 5, 2014, (Litigation Release No. 22936)
A summary judgment was entered against StratoComm Corporation, its CEO, Roger D. Shearer, and its former Director of Investor Relations, Craig Danzig, for issuing and distributing "public statements falsely portraying the penny stock company as actively engaged in the manufacture and sale of telecommunications systems for use in underdeveloped countries." According to the SEC, the defendants "sold investors more than $4 million worth of StratoComm stock in unregistered transactions." The SEC has charged the defendants with violating various provisions of the securities laws. "The court has not yet determined the appropriate relief against StratoComm, Shearer, and Danzig."
Federal Grand Jury Indicts CEO of Chicago-Area Company Accused of Defrauding Investors in Multi-Million Dollar Stock Scam, March 4, 2014, (Litigation Release No. 22935)
Last week, a federal grand jury returned "an 11-count indictment against Gregory Webb, the CEO and President of InfrAegis, Inc." Webb and InfrAegis allegedly obtained funds from investors through the offer and sale of InfrAegis stock "by making false representations about the solvency and financial condition of InfrAegis, about contracts that the company allegedly expected to be awarded or had been awarded, and about the expected and actual return on investment investors would get from the company." The SEC filed a civil enforcement action in 2011 "against Webb and InfrAegis based, in part, on the conduct alleged in the criminal indictment." The SEC had charged the defendants with violating the Securities Act and Exchange Act. Webb faces "eight counts of mail fraud and three counts of wire fraud, each of which carries a maximum penalty of 20 years in prison and a $250,000 fine. Restitution is mandatory."
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