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by Mike Caswell

The U.S. Securities and Exchange Commission has asked a Pennsylvania judge to impose a permanent ban and at least $1.05-million in financial penalties on Don Rose, one of the accused in the Ecoland International Inc. manipulation. (All figures are in U.S. dollars.) The SEC says that Mr. Rose, 59, knowingly took part in a fraudulent scheme to boost the Ontario company with wash trades and spam. He sold millions of shares and transferred the proceeds to nominees, according to the SEC.

The request from the SEC comes just days after the judge imposed $4.41-million in penalties on Toronto's Berardino "Dino" Paolucci for the same scheme. The SEC said that the men manipulated Ecoland, an OTC-BB listing that went to $1.24 from 11 cents in just 10 days. Among other things, the men touted it as an auto parts company.

The proposed sanction for Mr. Rose includes disgorgement of $914,249 in gains plus interest. In addition to that amount, the SEC is asking the judge to impose a civil penalty, with the size ranging as high as his gains. This could bring his total fine to as much as $2-million. The SEC is also asking that the judge permanently ban him from penny stocks. The request is contained in a motion for default judgment that the SEC filed on Aug. 15, 2017.

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