Manhattan, NY – Three men defrauded investors of $800,000 by selling shares of Forest Resources Management Corp., a shell company that “had no income or assets,” the SEC claims in Federal Court.
Subscribe to our Daily Roundup Email
The SEC sued Forest’s former three officers. The Commission also says “Forest’s false and misleading material misrepresentations and omissions about its business operations artificially increased demand for that stock.”
The Commission alleges that Forest is and was a public shell company that at all relevant times had no income or assets.
The three acted together to make material misrepresentations to Forest’s transfer agent that provided false justification for the transfer agent to issue millions of restricted shares to then selfs, their nominees and others without the required restrictive legend.
All three and their nominees placed these unlegended shares in brokerage accounts they controlled, and sold many of these shares in the open market, falsely holding them out to the public as free-trading shares, when in fact the shares were restricted stock.
A registration statement was never in effect for these transactions in Forest’s stock. The Commission further alleges that they sold more than a million shares of the improperly unlegended shares to the investing public, after issuing a series of false statements to the investing public regarding Forest’s assets and commercial prospects.
okay, tachlis, who are these people?? heimisheh?? Thats all we need! Another one!! oi vei!!
2/3 were heimish