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Securities and Exchange Commission charges Danny Garber Michael Manis Kenneth Yellin Jordan Feinstein with Securities Fraud
submitted by errol.aina-79
On December 21, 2012, the Securities and Exchange Commission (the “SEC”) charged Danny Garber, Michael Mannis, Kenneth Yellin and Jordan Feinstein as well as 12 corporate egos with conducting a fraudulent penny stock scheme. The SEC alleges that from the years 2007 through 2010, the defendants acquired more than a billion shares of unregistered stock in multiple microcap issuers at huge discounts, and then dumped the shares into the public markets receiving approximately $17 million in illegal profits while claiming bogus exemptions from the registration provisions of the federal securities laws.The SEC alleges that the defendants acquired unregistered shares at about 30 to 60 percent less than the market price by misrepresenting to the penny stock companies that they intended to hold the shares for investment purpose.According to the SEC, the defendants immediately sold the shares publicly while falsely claiming they were able to rely on state law exemptions from registration. To create the appearance that the purported exemptions were available, the defendants created virtual corporate presences in Minnesota, Texas, and Delaware.
 
Topic: Business


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