SEC Charges Penny Stock Company CEO and Purported Business Partner for Defrauding Inv

Discussion in 'Wall St. News' started by dealmaker, Jul 21, 2014.

  1. dealmaker

    dealmaker

    PRESS RELEASE

    SEC Charges Penny Stock Company CEO and Purported Business Partner for Defrauding Investors With False Press Releases
    FOR IMMEDIATE RELEASE
    2014-140
    Washington D.C., July 18, 2014 — The Securities and Exchange Commission today charged a serial con artist and a penny stock company CEO with misleading investors in a supposed vaccine development company by issuing false press releases portraying it as a successful venture when it was in fact a failing enterprise.
    The SEC alleges that Christopher Plummer teamed up with the CEO of CytoGenix, Lex M. Cowsert, to defraud investors with extravagant claims about the microcap company’s revenue and other benefits flowing from a “shared revenue agreement” with Franklin Power & Light, an electricity provider supposedly operated by Plummer. However, Plummer’s entity was a complete sham, CytoGenix had actually lost all of its vaccine patents and other intellectual property in a lawsuit, and Plummer and Cowsert stole proceeds of CytoGenix stock offerings that they told investors would be used for energy production projects and other corporate purposes.

    “Plummer and Cowsert misled investors by widely mischaracterizing a worthless thinly-traded microcap issuer as a growing success with lucrative new business opportunities,” said Andrew M. Calamari, director of the SEC’s New York Regional Office. “Crooked penny stock promoters like Plummer and their unscrupulous sidekicks, often company CEOs like Cowsert, must be held accountable to the investing public for the misinformation they so freely disseminated into the marketplace.”


    http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542330146#.U8lz6lY79tI