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by Mike Caswell

Michael Krome and Robert Weidenbaum, two defendants in the U.S. Securities and Exchange Commission's case for the CO2 Tech Ltd. market manipulation, have settled the charges. Each man has agreed to a permanent penny stock ban and to an injunction barring future violations. Neither admitted to any wrongdoing.

The SEC claimed that the men were part of a 2007 scheme to boost CO2 Tech with false claims about pollution control products, including one in which Boeing had purportedly taken an interest. Others charged in the case include recidivist securities violator Jonathan Curshen and former Pacific International Securities Inc. broker David Ricci.

According to the SEC, Mr. Weidenbaum's role was to enlist a group of promoters who executed matched orders to "jump-start" the stock. Mr. Krome, for his part, wrote a fraudulent opinion letter that allowed other defendants to control 22.5 million tradable shares, many of which they sold during the promotion, the regulator claimed. The settlements with the two men are contained in proposed judgments filed on Tuesday, Nov. 1, in Florida. The SEC did not request any monetary penalties, anticipating that the men will face restitution orders in a parallel criminal case.

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