This world has a lot of problems that require fixing, but I dare say that scratch-off lottery tickets is not one of them. Still, that is the problem that Lee Cole and Linden Boyne ventured to solve through Electronic Game Card, Inc. (EGMI), a company that tried to develop credit card-sized electronic games that could… Continue Reading
Category Archives: Microcap Fraud
Subscribe to Microcap Fraud RSS FeedSEC Going after Lawyers
Posted in Microcap FraudOver the last year, SEC Enforcement Director Rob Khuzami has made no secret of his disdain for defense counsel who engage in “questionable tactics” to gain advantage for their clients involved in SEC investigations. He made a speech last June in which he cited a number of examples of those tactics. They included: Multiple representations of… Continue Reading
Oh, Rudy . . .
Posted in Microcap FraudI’ve said it once already: If you used to be famous, you probably should steer well clear of conduct that could be construed as securities fraud. Because of the perceived deterrent value in highlighting your violations, regulators will have extra incentive to catch and make an example out of you. Daniel “Rudy” Ruettinger, a former Notre… Continue Reading
SEC (Smartly) Focuses on Transfer Agents
Posted in Microcap Fraud, Non-scienter-based ViolationsEnforcement investigations into microcap, or penny, stocks are difficult and often thankless. They frequently involve unsavory characters who could as easily be running a real estate scam or Nigerian advance fee fraud as one involving securities. Proving intent to defraud in cases like this is often very tough, as the players shield their activities behind… Continue Reading