The Securities and Exchange Commission said two men settled in a ...
The Securities and Exchange Commission said two men settled in a spam scam case. Darrel Uselton and his uncle Jack Uselton agreed not to trade in penny stocks. Darrel Uselton will pay $2.8 million in disgorgement and interest and…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
a $1 million fine. They're also settling criminal charges filed by the Texas attorney general. The men raked in $4 million by buying penny stocks, then driving up demand with spam e-mails and an Internet campaign, the SEC said. The SEC said the men received unrestricted shares in exchange for their promotional activities and placed those shares in brokerage accounts. They then encouraged the penny stock companies to issue positive press releases and used technology to instruct other people’s computers to send millions of spam e-mails that appeared to come from someone the recipient knew, the SEC said. “This settlement holds the Useltons accountable for flooding the inboxes of American investors with hundreds of millions of spam e-mails touting these near worthless penny stocks,” said Cheryl Scarboro, associate director of the SEC’s division of enforcement.