On April 10, 2012, the United States Securities and Exchange Commission (SEC) announced its decision to enjoin Timothy Page of Malibu, Calif., Ryan Reynolds of Dallas, Phillip Offill Jr. of Dallas, Steven Fischer of Bonita Springs, Fla., Page Properties LP, RSMR Capital Group Inc. and ATN Enterprises LLC from violating Section 5 of the Securities Act of 1933. The decision was passed by the Honorable Sidney A. Fitzwater of the United States District Court for the Northern District of Texas.
Stock fraud lawyers say that according to the SEC’s complaint, these individuals and entities allegedly violated securities laws. They did so by acting as underwriters in order to engage in a scheme that would allow them to evade securities registration requirements. This was accomplished by the selling and offering of securities to at least one of six companies where no registration statements were available to provide information to public investors.
Penny stocks are equity securities that are traded at a price that is less than five dollars per share. The six companies issued these stocks and, in the over-the-counter market, initiated public trading under the following: Ecogate Inc. (ECGT), American Television & Film Company (ATFT), Auction Mills Inc. (AUML), Vanquish Productions Inc. (VQPI), Media International Concepts Inc. (MEIC) and Custom Designed Compressor Systems Inc. (CUPY).
According to securities arbitration lawyers, Page, Fischer, Reynolds, RSMR and Page Properties were barred by the court from participating in the sale or offer of penny stocks for seven years. Offill, however, was barred permanently. Reynolds, Page, Page Properties and RSMR were also enjoined by the court from violating the Securities Exchange Act of 1934, Section 15(a) by failing to register as brokers or dealers with the SEC when engaging in the securities transaction. The defendants were ordered to pay $12,219,468 in disgorgements for profits yielded by the unregistered securities sales plus prejudgment interest. Furthermore, stock fraud lawyers say they must each pay $120,000 in penalties.
If you think you may have been the victim of securities fraud, find out more about your legal rights and options by contacting a securities arbitration lawyer at The Law Office of Christopher J. Gray at (866) 966-9598 for a no-cost, confidential consultation.