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 filed civil charges against Canadians Dean Shah and Julius Csurgo for the pump-and-dump of Zenosense Inc., the developer of a supposed hand-held cardiac diagnostic device. The SEC claims that the men were part of a scheme to sell $13.4-million worth of Zenosense shares as paid touts called the company a "rare ground-floor opportunity." (All figures are in U.S. dollars.) The stock went to a $3.50 high during the scheme, before falling to pennies.

The charges against the men are contained in a civil complaint that the SEC released on Monday, April 18. The complaint identifies Mr. Shah, 53, as citizen of Canada and the United Kingdom who was living in Spain. Mr. Csurgo, 66, is a Canadian living in Ontario. Also named is Henry Clarke, 51, a citizen of the U.K. who is living in Spain.

The scheme, as described by the SEC, goes back to 2013, when Mr. Shah and Mr. Clarke obtained control of Zenosense. According to the SEC, the pair amassed shares of the company in several accounts, with each account holding an amount below the reporting threshold of 5 per cent. In doing so, the men avoided the scrutiny that brokerages, transfer agents and others are expected to apply to larger shareholders, the SEC says.

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