The SEC suspended trading in the securities of three companies that haven’t adequately disclosed information to investors and have been the subject of spam e-mail campaigns and promotional videos on the Internet site YouTube. The videos often repeat information in the companies’ press releases and are posted to coincide with traditional spam e-mail campaigns.
The Commission issued an Order finding that each of the companies subject to today's trading suspension — NeoTactix Corporation (NTCX), Graystone Park Enterprises, Inc. (GPKE), and Younger America, Inc. (YNGR) — has inadequately disclosed its assets, business operations, and current financial condition.
The "Anti-Spam Initiative", launched in March 2007, has been credited with a significant reduction in financial spam, and spam-related complaints to the SEC's Online Complaint Center have decreased by more than two-thirds in the past year.
Through its Anti-Spam Initiative, the SEC has suspended trading in the securities of 50 companies and has brought several enforcement actions against spammers, promoters, and insiders. These latest three suspensions are the result of a coordinated effort between the SEC's New York, Denver, and Washington D.C. offices. The SEC's Anti-Spam Initiative is now part of the microcap fraud working group recently formed within the Division of Enforcement.
NeoTactix Corporation is quoted on the OTC Bulletin Board and the Pink Sheets, and changed its name and symbol from EntreMetrix Corp. (ERMX) on Jan. 11, 2008. Graystone Park Enterprises and Younger America are quoted on the Pink Sheets. The trading suspensions will last for 10 business days, commencing today at 9:30 a.m., ET, and terminating at 11:59 p.m., ET, on April 3, 2008. The Commission has not suspended trading in all of the stocks described in the promotional videos.
The SEC's Online Complaint Center has reported a major drop in spam-related complaints since the SEC announced its Anti-Spam Initiative. Online spam-related complaints to the SEC dropped from more than 166,741 complaints in February 2007 to 53,785 complaints last month — a decline of nearly 68 percent.
The Online Complaint Center can be reached at enforcement@sec.gov, as information from the public may alert the SEC to an unfair practice in the securities industry or the latest fraud. Any broker, dealer or other person with information relating to these trading suspensions can e-mail the SEC at 35suspensions@sec.gov.
The SEC's Office of Investor Education and Advocacy has information for investors and members of the general public on topics directly related to this action by the SEC. Visit http://www.sec.gov/investor/antispaminitiative.htm for a compilation of helpful links.
Anti-Spam Initiative, SEC A private-sector Internet security report stated that a 30 percent decrease in stock market spam "was triggered by actions taken by the U.S. Securities and Exchange Commission, which limited the profitability of this type of spam."
Market Manipulation and Stock Fraud Charges The Commission’s complaint, which it filed with the U.S. District Court in Houston, charges the Useltons with orchestrating a series of spam e-mail campaigns. The scheme, which relied on an array of computer “botnets,” touted near-worthless penny stocks in millions of spam e-mails sent to potential investors.
SEC Suspends Trading Of 35 Companies The 35 suspensions concern companies that are not subject to the reporting requirements of the Securities Exchange Act of 1934. Not listed on any exchange, or on the OTC Bulletin Board, the companies' securities have been quoted on the Pink Sheets quotation service on an unsolicited basis, meaning that the brokers posting quotations for the purchase and sale of the securities are not required to conduct due diligence regarding the issuers.
Fraudulent Securities Scam Sentencing Swanson released fraudulent and misleading press reports, indicating that RTIN had entered into franchise agreements including future payments the franchisees would make in the future.