SEC Microcap Pump Dump Scheme

On Jul. 18, SEC charged two in fraud scheme targeting elderly.

  • SEC charged Garrett M. O'Rourke of FL, and Michael J. Black of MD in microcap pump and dump scheme targeting elderly retail investors, SEC also obtained asset freezes.

Fraud Scheme

  • From 2016 to 2018, defendants used high pressure promotional campaigns to sell the stock of several microcap companies fraudulently to retail investors, including elderly.
  • Use tactics such as unsolicited cold calls to tout stocks and lie about association with legitimate financial institutions, as well as having investors' best interests at heart.
  • Real purpose was to get them to buy, so they could sell their own stocks for a profit.
  • Also, hid control over at least one of the microcap companies, EnviroTechnologies International, to help sell stock in public market and generate millions in proceeds.
  • Used overseas trading platforms and a fictitious name to conceal their illicit activity.

Relief Sought

  • In addition to the asset freeze and temporary restraint, SEC seeking permanent injunctions, restitution with prejudgment interest, civil penalties, penny stock bars.