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by Mike Caswell

New York penny stock promoter Christopher Wheeler has refused to fully answer charges he faces for a $2.95-million pump-and-dump, citing his constitutional right against self-incrimination. (All figures are in U.S. dollars.) He faces civil charges from the U.S. Securities and Exchange Commission for touting four pink sheets companies on his website, OTCStockExchange.com, while secretly selling them. The stocks included Toronto-based Infinity Medical Group Inc. and Cannon Exploration Inc.

Mr. Wheeler, in his answer to the suit, admits to some routine items such as being a 43-year-old resident of Victor, N.Y., but says little else. In response to most paragraphs, he "invokes the privilege against self-incrimination afforded by the Fifth Amendment of the United States Constitution, and exercises his constitutional rights not to respond." He asks that the suit be dismissed, with costs. His lawyer, Steven Cole, filed the answer on Friday, Oct. 28.

The response comes after Mr. Wheeler attempted and failed to have the SEC's case put on hold pending completion of a related criminal investigation. He said he had only become aware of the criminal investigation in June, 2010, after federal agents searched his home. He argued that he could risk incriminating himself in the criminal matter by providing a full answer to the SEC's civil charges. The judge denied the motion after the SEC argued that there was no indication there would ever be criminal charges.

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