17:46:09 EST Mon 23 Nov 2020
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SEC target Brown receives four years

2011-05-24 14:00 ET - Street Wire

Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
Also Street Wire (U-AAGH) Asia Global Holdings Corp
Also Street Wire (U-GHTI) GH3 International Inc

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by Mike Caswell

Matthew Brown, operator of the penny stock website Investors Hub, has been sentenced to four years in jail for securities fraud and money laundering. He received the sentence on Wednesday, May 18, in an appearance before Delaware Judge Sue Robinson. His arrest followed an investigation into the manipulation of four pink sheets listings, including Ontario-based Playstar Corp.

Mr. Brown, 27, had faced a maximum of 50 years in jail and fines of over $1-million. (All figures are in U.S. dollars.) He accepted a plea agreement in February, 2010, in which the government agreed to recommend a reduced sentence, provided he accepted full responsibility for his actions.

Prior to his sentencing, Mr. Brown had been free on a $50,000 appearance bond. Once he completes his four-year jail term, he will serve three years of probation, during which he must not participate in penny stock offerings. He must also forfeit $4.78-million, the estimated proceeds from his crime. Full details of his sentence were not publicized, as prosecutors filed his sentencing memorandum under seal.

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