U.S. SEC Florida Penny Stock Fraud

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.

Alleged Violations

  • 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.

Violations, Relief

  • 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.