Linus Unah – Fourth Estate Contributor
Washington, DC, United States (4E) – The U.S. Securities and Exchange Commission (SEC) has charged a New Jersey-based group of stock promoters with fraud.
The SEC said in a press release posted on its website that the fraud involves the “manipulation and artificial inflation” of the share price of a microcap company.
The scheme grossed over $1 million, according to the U.S. securities regulatory.
The SEC alleged that James M. Farinella, and his purported consulting firm Integrated Capital Partners, Inc. (ICP), controlled virtually the entire public float of stock in microcap issuer Pazoo, Inc.
The SEC further noted that Farinella, 50, paid Equity Awareness Group (EAG) to promote Pazoo and to engage in matched trading to create “the appearance of an active market” for Pazoo stock and boost the stock price.
Anthony Amado, an owner of EAG, and Carlo Palomino, an EAG employee, carried out the scheme, enabling Farinella to dump Pazoo shares for over $1 million, the SEC alleged.
The SEC’s complaint charges Farinella, ICP, Amado, EAG and Palomino with violating federal securities and seeks permanent injunctions, disgorgement of ill-gotten gains and penny stock bars
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