New York, NY -- (SBWIRE) -- 06/18/2012 -- On June 4th, 2012, the Securities and Exchange Commission (S.E.C.) laid charges is nine cases relating to securities fraud and manipulation, against individuals in Southern Florida. In coordination with the Federal Bureau of Investigation (F.B.I.) and the U.S. Attorney for the Southern District of Florida, the S.E.C. leveled the claims, which were the latest in a series of several previous cases.
These latest cases involved Civil Action No. 0:12-cv-61078-JAL and Civil Action No. 0:12-cv-61077-CMA (both for the U.S. District Court for the Southern District of Florida), among several others.
The S.E.C. states that the charges were leveled at several penny stock companies, the officers of those penny stock companies, promoters who attempted to manipulate prices of the shares, and certain stock brokers.
"The company officers and promoters in many of these schemes disguised their kickbacks as payments to phony consulting companies that performed no actual work," said Eric I. Bustillo, director of the SEC's Miami office. "These illegal activities were fully intended to artificially inflate the stock volume and prices of these penny stock companies to the detriment of investors."
"Aggressive penny stock promotions are far too common," states Peter Leeds, author of "Invest in Penny Stocks," penny stock analyst, and publisher of the Peter Leeds Penny Stock newsletter. "Crackdowns on aggressive promotions are not nearly common enough. If someone misleads investors to manipulate penny stocks, their prices, or the potential of the underlying company, they should be held accountable."
Leeds adds that he is hopeful the allegations will deter would-be penny stock promoters, who often don't have the best interests of the public in mind.
"If they get paid by the penny stock companies they are talking about, how can you trust what the promoters are saying? If they make money by driving up the prices of the penny stocks, why would you want to accept what they are telling you?"
Leeds states that neither he, nor any of his team members, have ever accepted a single penny of compensation from the penny stocks they review for their world famous Peter Leeds Penny Stocks newsletter.