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SEC Charges Penny Stock "Mailman" With Scalping Investors In Gold Mining Stocks

Posted on March 11, 2018 at 9:25 PM

The SEC charged Brian Sodi, a penny stock promoter based in Florida, with defrauding investors in a pair of gold mining stocks by secretly amassing shares before touting the companies publicly. He allegedly:

  • sold the bulk of his stock and reaped more than $1.1 million in illicit profits after his promotions caused the share prices and trading volumes to skyrocket;
  • disseminated promotions recommending the purchase of the stocks in Southern USA Resources Inc. and Goff Corporation without disclosing he owned shares and planned to sell them through a foreign bank; 
  • hid from investors that he was being paid in stock for one of these promotions; and
  • proceeded to unload hundreds of thousands of his own shares to the detriment of other investors who bought in to the hype.

Criminal charges were unsealed yesterday in a parallel action filed by the U.S. Attorney’s Office for the Northern District of Alabama.

The SEC’s complaint filed February 26 charges Sodi and two of his publishing houses, Capital Financial Media LLC and List Data Solutions LLC, with violating Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 and Sections 17(a) and (b) of the Securities Act of 1933. The complaint also charges Sodi with violating Section 13(d) of the Exchange Act and Rule 13d-1 as well as Sections 5(a) and (c) of the Securities Act. Among other things, the complaint seeks an accounting of all of Sodi’s and his entities’ sales of all U.S. penny stocks that Sodi’s platform promoted within the last five years.

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Categories: Fraud, Fair Dealing