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.
