SEC Suspends Trading of 61 Companies in Over-The-Counter Market

June 3, 2013

The SEC  announced the second-largest trading suspension in the agency’s history as it continues its “Operation Shell Expel” mission against the manipulation of microcap shall companies that are ripe for fraud as they lay dormant in the over-the-counter market. The SEC suspended trading in the securities of 61 empty shell companies that are delinquent in their public filings and appear to no longer be in business based on analysis by the SEC’s Microcap Fraud Working Group.   Since these companies are thinly traded as dormant companies, they become susceptible to hijacking by fraudsters who falsely hype the stock to portray it as a thriving company and coerce investors into “pump-and-dump” schemes.  These companies must now provide updated financial information to prove they’re still operational, and the suspension of trading essentially renders them useless to the fraudsters.
Click here to access a press release and links to the list of companies and trading suspension order.


Investment Advisers