This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has won an order seizing $1.07-million in stocks and cash formerly belonging to Montreal penny stock promoters Dan Ryan and Carol McKeown. (All figures are in U.S. dollars.) The money represented the proceeds from a scalping scheme, in which the couple promoted stocks through their website as they sold millions of shares.

The decision comes one month after the SEC won $3.79-million in penalties against the couple for the scheme. The judgment was a victory by default, as Mr. Ryan and Ms. McKeown failed to respond to the case.

The seizure order, handed down on Feb. 25, 2010, by Florida Judge James Cohn, directs several brokerage firms to turn over all the stocks and cash held by two private companies the couple control. The stocks, which the SEC values at $943,802, will be returned for cancellation. The couple's accounts had been frozen since the SEC launched the suit in June, 2010.

Mr. Ryan and Ms. McKeown did not appear in court to oppose the seizure. Their only appearance in the case was early on, when Ms. McKeown wrote the judge to ask for time to secure a lawyer. She said that the asset freeze left her and Mr. Ryan with no financial ability to defend themselves. Judge Cohn denied the request on Sept. 3, 2010.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS