The SEC filed charges against Eric P. Lesak, Global Research, LLC (PA) and Global Research, LLC (NY) (collectively, "Global") for securities fraud in connection with the promotion of common shares of a penny stock company. According to the SEC, investors lost approximately $2.3 million before the SEC suspended trading in the stock.
According to the SEC Complaint, Mr. Lesak and Global failed to disclose to investors that (i) they were paid to promote the stock and (ii) that Mr. Lesak "had been barred and had his registration suspended by the NASD, or that in 2013 he had pleaded guilty to and been convicted of both securities fraud and wire fraud related to securities transactions." The SEC alleges that Mr. Lesak "personally bought and sold thousands of shares" of the stock "in hundreds of transactions that made little economic sense" in order to create "the appearance of a market" for the securities.
"The SEC is seeking permanent injunctions, disgorgement plus pre-judgment and post-judgment interest, civil monetary penalties, and an order prohibiting [Mr.] Lesak from participating in any offering of penny stocks."
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