On November 30, SEC charged penny stock operators of defrauding elderly.
- Charged two individuals with defrauding elderly investors in a penny stock scheme.
- Involving Florida entertainment companies and "Spongebuddy" product, recidivists.
- Charged Joseph Rubbo, Angela Beckcom Rubbo Monaco with fraud in federal court.
- Repeat offenders, whose prior schemes resulted in criminal convictions, injunctions.
- Raised at least $5.4mn from 11 elderly investors to fund an entertainment business.
- To develop the Spongebuddy, as sponge-like glove, purportedly to be sold in stores.
- Misappropriated $2.6mn to pay themselves, relatives in undisclosed commissions to co-conspirator Dykes, against whom parallel criminal proceedings have been raised.
- Charged with violating anti-fraud provisions of the US securities laws, Dykes violating broker-dealer registration provisions, two others with aiding and abetting violations.
- Sought return of allegedly ill-gotten gains, interest, monetary penalties, permanent injunction, and other relief against perpetrators of scheme, investigation is ongoing.