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