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 says that Quebec's Fabrizio Di Carlo has failed to answer charges arising from a boiler room that he ran, and is asking a judge to hold him in default. He supported a scheme that included fraudulently boosting a supposed biotech company that developed an anti-choking device, among other things, the SEC says. His call room pitched the stock while collecting undisclosed commissions of up to 30 per cent, according to the SEC.

The SEC's proposed default is contained in a request that the regulator filed on Monday, May 22, in federal court in New York. The SEC says that Mr. Di Carlo has yet to file an answer to the charges, despite acknowledging receipt of the case over six months ago. (He had 90 days to respond.) As a result, the SEC is asking that the court declare him to be in default, which would clear the way for the SEC to seek fines, bans or other sanctions without a trial.

Monday's request is mostly legalese, and says nothing about the penalties that the SEC intends to seek for Mr. Di Carlo. When it filed the case, the SEC sought an appropriate fine, as well as a permanent penny stock ban. Other defendants previously accepted penalties ranging from $58,230 to $795,590 to settle the case, without admitting any wrongdoing. (All figures are in U.S. dollars.)

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