The Securities and Exchange Commission has charged John R. Shrewder of Oklahoma and his company, Franklin Group Inc., for defrauding investors, as he allegedly embellished the investments in two penny stocks, Artec Inc and Sequoia Interests Corp, according to The Victoria Advocate.
According to the SEC, Shrewder sent out faxes claiming the stocks were "strong buys" and did not disclose that he was actually hired to promote the shares. The faxes contained incorrect and misleading information, and at the same time, Shrewder sold his own shares in both of the companies.
The SEC also charged Ashley Miron Leshem because by hiring Shrewder, he violated a previous ban the SEC put on him from participating in penny-stock sales. The SEC is aiming to get a court order that would mandate both men to return their illegitimate gains, including interest.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.