SEC stops trading on three stocks engaging in spam

The SEC halted trading on the penny-stock shares of NeoTactix,
Graystone Park Enterprises and Younger America, accusing those firms of
failing to adequately disclose information to investors, according to
an agency news release issued Thursday. No trading can occur until
April 4 while the SEC investigates the companies' assets, operations
and finances.

The three businesses, listed on the so-called pink sheets, were
mentioned in promotional email spam and YouTube video campaigns that
tried to convince people to invest in their stocks, according to the
SEC.

None of the three companies could be reached for comment on Friday.

In the past, the SEC has gone after companies believed to be involved
in pump-and-dump schemes,  in which junk mailers buy shares of the
stock, send the spam, wait for the prices to rise and then they sell
their shares for a quick and substantial profit, often while investors
are left holding a sinking ship.

"The SEC's anti-spam efforts have been remarkably successful to date,
but we will not be complacent in our pursuit of unscrupulous stock
promoters," Linda Chatman Thomsen, director of the SEC's Division of
Enforcement, said in the release.

Since the agency launched its Anti-Spam Initiative one year ago, the SEC has suspended trading on 50 companies engaged in questionable stock promotion practices. This is the first time the agency has penalised firms whose stock was touted in videos.

See original article on scmagazineus.com

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