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 reached a settlement with Wall Street Capital Funding LLC, a Florida tout service facing civil fraud charges for promoting questionable pink sheets companies. The SEC claimed that the firm issued overly optimistic recommendations for four companies in 2009 and 2010. They included a purported oil and gas explorer called PrimeGen Energy Corp., which had former Vancouver promoter William Scott Marshall as an officer. (The SEC did not name Mr. Marshall as a defendant or accuse him of any wrongdoing.)

According to the SEC, Wall Street Capital told investors that PrimeGen was a "stock to watch," despite the company being a "pure scam." Its corporate headquarters was a rented mail box in a UPS store, its phone line was unattended and its website was a copy of another company's site. The stock had a high of 38 cents during the touting, and was last at one cent. (All figures are in U.S. dollars.)

Details of the settlement, which covers Wall Street Capital and three people associated with the firm, are not yet available, as the SEC commissioners must first approve it. The SEC had sought orders banning the defendants from participating in penny stock offerings, as well as appropriate civil penalties. As in most settlements, the defendants will likely not admit to any wrongdoing.

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