$34 Million Fraud Scheme involving Biozoom Inc. Stock
According to a press announcement, the Securities and Exchange Commission today charged four individuals for their roles in a fraudulent scheme that allegedly generated nearly $34 million from unlawful stock sales and caused significant harm to retail investors.
According to the SEC’s complaint, the defendants allegedly manipulated the market for and illegally sold the stock of microcap issuer Biozoom Inc.
The SEC further alleges that the defendants hid their ownership and sales of Biozoom shares by using deceptive practices, such as offshore bank accounts, false legal documents, etc.
The defendants also purportedly artificially inflated Biozoom’s share price by directing a wide-ranging promotional campaign and using manipulative trading techniques.
The defendants’ illegal sales of Biozoom apparently resulted in close to $34 million in unlawful proceeds.
According to the press announcement, the SEC obtained a court order in 2013 freezing proceeds from the unlawful Biozoom sales. It subsequently obtained a default judgment and established a fair fund, which has returned more than $14 million to harmed investors. The SEC also previously charged a lawyer and officer of Biozoom’s predecessor entity.
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This information is all publicly available on the SEC’s website and is provided to you by The White Law Group. If you have concerns regarding your investment in Biozoom, Inc. and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510.
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