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by Mike Caswell

The U.S. Securities and Exchange Commission has won a permanent penny stock ban and $2.87-million in penalties against Vancouver promoter Joseph Fernando and a private company he controls, Wellington Capital Enterprises Inc. (All figures are in U.S. dollars.) The penalties, handed down on Wednesday, Nov. 9, in District Court in Colorado, are for a pair of pump-and-dumps from 2005. The judgment represents a decision by default as he mostly ignored the case.

The SEC claimed that Mr. Fernando, 42, and others promoted OTC Bulletin Board listings Xpention Genetics Inc. and HS3 Technologies Inc. with spam and paid tout sheets in 2005. Mr. Fernando's role in the promotions included paying for favourable coverage in three newsletters, one of which predicted a $100 price for Xpention. He and the others then sold $3.5-million worth of stock.

Mr. Fernando's penalty comes the same day that the SEC secured $105,374 in fines against Colorado promoter John Coutris and $53,486 against his younger brother Michael Coutris for the scheme. The SEC said the brothers recruited early investors and sold small amounts of stock during the promotions. The brothers settled the case out of court and did not admit to any wrongdoing.

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