The Investor’s Watchdog

The Investor's Watchdog

SEC Charges Penny Stock Company for Deceptive Claims that Led to $7.9 Million in Investment Fraud

Wednesday, March 27, 2019

The Securities and Exchange Commission (SEC) has now convicted the seventh and final individual involved in a $40 million “pump and dump” scheme.

Andrew Farmer, Thomas Massey, Eddie Austin Jr., Carolyn Price Austin, and Charles Grob of Houston, Texas and Scott Sieck of Winter Park, Florida all previously pleaded guilty for their respective roles in the scheme. John Brotherton of League City was the latest to enter into a guilty plea. Sieck, Grob, Brotherton, Eddie Austin, Massey and Farmer admitted to participating in a conspiracy to commit fraud in microcap securities by obtaining control of the stock of several companies, releasing misleading and false information to hype, or “pump” the price of the stock, and “dump” their shares of the stock onto the market for significant profit.

Brotherton, Sieck, Grob and Massey are scheduled to appear in court for sentencing on June 3, 2019. Eddie and Carolyn Austin are set for June 17, while Farmer will be sentenced on June 24, 2019. All defendants could be ordered to pay up to a $250,000 fine and face three to ten years in prison. All defendants except Brotherton, who violated his conditions of release, are out on bond pending their sentence hearings.

Did you invest in this alleged microcap pump and dump scheme at the advice of an attorney, a broker, insurance agent, CPA, or financial advisor and lose money? Recovery may be possible. Since 1998, we have been fighting for victims of investment fraud and broker misconduct. Call us today (1-877-410-8172) for a free, no obligation consultation.

Author: Jason T. Albin

Jason Albin is an Attorney and Partner at ChapmanAlbin, the investor rights law firm. He has represented hundreds of investors who have lost money due to broker misconduct, unsuitable investment advice and fraud.​ Jason also represents individuals in “whistleblower” suits filed against unscrupulous companies that try to defraud the US federal and state governments.

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