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 asked a New York judge to impose at least $19.2-million in sanctions against Verdmont Capital SA, the Vancouver-linked offshore brokerage accused of facilitating multiple pump-and-dumps. (All figures are in U.S. dollars.) The SEC says a substantial penalty is warranted, given the many red flags that Verdmont ignored in handling questionable stock sales. The firm accepted and sold large volumes of stock while aggressive promotional campaigns were under way, according to the SEC.

The proposed penalties come as part of case that the SEC has been pursuing for just over two years. The regulator claimed that Verdmont was part of a group of offshore brokerages that sold $75-million worth of shares in four listings in 2013. The selling occurred as unnamed others were touting the companies as active oil and gas or mining issuers.

The penalties, should the judge grant them, would be largely symbolic. Verdmont is no longer in business, and its affairs are managed by a receiver. The firm's only remaining asset is a $239,000 account in the U.S. that the SEC had frozen at the outset of the case.

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