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SEC bans Becker for Chinese OTC-BB manipulations

2015-05-06 11:13 ET - Street Wire

Also Street Wire (U-*SEC) U S Securities and Exchange Commission
Also Street Wire (U-CALI) China Auto Logistics Inc
Also Street Wire (U-GPRC) Guanwei Recycling Corp

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by Mike Caswell

Shawn Becker, an investor relations man charged for a $10.6-million market manipulation scheme run from Ontario, has settled the case out of court. (All figures are in U.S. dollars.) He has agreed to accept a permanent penny stock ban and to pay fines in an amount that a judge will determine. Mr. Becker did not admit to any wrongdoing in reaching the settlement.

The sanctions stem from Mr. Becker's role in the alleged manipulation of two Chinese OTC Bulletin Board listings, China Auto Logistics Inc. and Guanwei Recycling Corp. The U.S. Securities and Exchange Commission claimed that a group of men, led by Ontario resident S. Paul Kelley, artificially boosted the stocks over a two-year period, keeping them between $3 and $4 for over a year. The SEC said that Mr. Becker, who ran an investor relations business in Kansas, aided the scheme by soliciting investors and executing wash trades.

Mr. Becker's settlement is contained in a motion the SEC filed on May 5, 2015. According to the motion, he has agreed to a ban from participating in penny stock offerings and to permanent injunctions against any future violations. He has also agreed to pay civil penalties and to disgorge his gains, with the judge will determine the amounts. It is not clear how much Mr. Becker could be ordered to pay, as the SEC has not said how much he made from the scheme.

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