This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The U.S. Securities and Exchange Commission has won a permanent penny stock ban and $2.3-million in monetary sanctions against Petar Mihaylov, the Bulgarian man charged alongside Vancouver's Ronald Bauer for multiple pump-and-dumps on the U.S. markets. (All figures are in U.S. dollars.) The SEC claimed that Mr. Mihaylov made millions from the 2015 promotion of Steampunk Wizards Inc., a company that the men boosted with claims such as "URGENT: BUY SPWZ UP TO $1.50 PER SHARE ... NOW!" Unfortunately for investors, the stock was soon worth pennies.

The penalties for Mr. Mihaylov are contained in a judgment that the SEC released on Thursday, Dec. 19. The $2.3-million includes a $1-million fine, plus disgorgement of $1-million in gains and interest. The judge has permanently barred Mr. Mihaylov from penny stocks and from serving as an officer or director. He is also banned from "inducing or attempting to induce" the purchase or sale of any security.

The ban comes just days after Mr. Mihaylov avoided criminal prosecution in the U.S. for the same scheme. Earlier this week, federal prosecutors in New York dropped charges of securities fraud and wire fraud after authorities in Bulgaria refused to extradite him, citing unspecified health problems. (Technically, prosecutors entered into what is known as a deferred prosecution agreement. Mr. Mihaylov agreed to behave himself and to pay his penalties from the SEC case. In return, the government will drop the charges in six months.)

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS