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by Mike Caswell

The U.S. Securities and Exchange Commission has fined Catherine DeFrancesco, the wife of Toronto's Andy DeFrancesco, for her part in an $8-million pump-and-dump on the OTC Markets. (All figures are in U.S. dollars.) The SEC said that Mr. DeFrancesco improperly sold shares of Cool Holdings Inc., a company that supposedly had a "$900 Million Opportunity from Apple." Ms. DeFrancesco's part in the scheme was to serve as the nominal president of several entities that Mr. DeFrancesco used, the SEC claimed.

The fine for Ms. DeFrancesco is contained in a proposed judgment filed in federal court in New York on Friday, June 9. She must pay a fine of $122,782 and will be subject to an order barring future violations. The penalties represent a negotiated settlement, in which Ms. DeFrancesco has accepted the sanctions without admitting any wrongdoing. The settlement still requires approval from the judge.

The case remains outstanding against Mr. DeFrancesco, who is accused of selling Cool Holdings during a 2018 touting campaign. The SEC said that Mr. DeFrancesco unloaded the shares while the stock went to a $18.25 high, boosted by misleading news releases. Cool Holdings claimed to be selling Apple products through a chain of retail stores, but failed to disclose that its relationship with Apple was strained, the SEC claimed.

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