SEC Ban Penny Stock Executive

On Mar. 9, SEC barred penny stock executive pumping stocks.

  • SEC barred Robert Ritch, president of a penny stock company from future role.
  • Blocked from serving as a public company officer or director, after was caught
    making false and misleading statements, about penny companies to investors.
  • Such statements were made to increase demand for his company's own stock.

SEC Actions

  • SEC confronted him; misstatements were removed from internet, social media.
  • This prevented spikes in stock price typically seen in pump and dump schemes.
  • Following a spike, fraudsters dump their own shares, price falls, investors lose.

Alleged Violations

  • Ritch spread false information on social media about his investment successes.
  • As well as company's prospects after he took control of Manzo Pharmaceuticals.
  • Told investors Manzo was holding company which invested and acquired others.
  • However, the firm had only a limited history, and was continuing to incur losses.
  • Fabricated detail of own career success, hid a criminal history of three felonies.


  • Consented to $50K penalty, officer-and-director bar, suspended trades in Manzo.