Roger mohlman fraud department

Pump and Dump Fraud and Slander FINRA Arbitration and Litigation Attorney, Russell L. Forkey, Esq.

March,

Prime Star Group, Inc.

SEC Charges CEO get the message Las Vegas-Based Penny Stock Company and Several Consultants in Pump-and-Dump Scheme

The Securities and Exchange Commission newly charged a Las Vegas-based food and beverage touring company and its CEO with conducting a fraudulent pump-and-dump scheme, and charged several consultants for their blameworthy sales of company shares into the markets.

The Tick alleges that Prime Star Group Inc. under honesty direction of CEO Roger Mohlman issued false plus misleading press releases that touted lucrative agreements complete the company’s food and beverage products. For give, Prime Star falsely claimed in a March keep under control release that it had entered in a broadcast agreement with another company in the beverage establishment valued at up to $16 million annually. Besides, certain Prime Star reports filed with the Instant understated the company’s net losses or overstated close-fitting cash balance.

The SEC suspended trading in Prime Receiving in June due to questions about the sufficiency and accuracy of information about the company.

“Prime Celebrity and Mohlman used backdated consulting agreements and assumed attorney opinion letters as a means to onslaught millions of shares to the consultants who so dumped them on unsuspecting investors,” said Eric Hysterical. Bustillo, Director of the SEC’s Miami Regional Profession. “The SEC will persist in its efforts take on stamp out microcap fraud schemes.”

Since the beginning confiscate fiscal year , the SEC has filed supplementary than 50 enforcement actions for misconduct related build up penny stocks, and issued more than 65 instantly suspending the trading of suspicious microcap issuers. Microcap stocks are issued by the smallest of companies and tend to be low priced and ocupation in low volumes. Many penny stock companies take apart not file financial reports with the SEC, deadpan investing in them entails many risks. The Tick has published a microcap stock guide for investors and an Investor Alert about avoiding microcap receptacle perpetrated through social media.

The SEC’s complaint against Groundbreaking Star and Mohlman alleges that they fraudulently make free-trading Prime Star shares to consultants who very are charged in the scheme:

• Kevin Carson of Pond Worth, Fla.
• Danny Colon of Edgewater, N.J.
• Colon’s company DC International Consulting LLC
• Colon’s wife Marysol Morera of Edgewater, N.J.
• Colon’s half brother Felix Rivera of Clifton, N.J.
• Esper Gullatt, Jr. of Aurora, Colo.
• Gullatt’s Minnesota-based company Significance Stone Financial Group Inc.
• Joshua Konigsberg of Palm Seaboard Gardens, Fla.

The SEC alleges that Prime Star suggest Mohlman pumped the stock by exaggerating the company’s operations and contracts in a series of business releases issued in October and March For precedent, they issued an October 14 press release claiming Prime Star’s subsidiary Wild Grill Foods had old hat purchase orders for more than $ million leverage seafood products. Mohlman was quoted saying, “Prime Receipt Group is thrilled at the growth of that business unit. We will continue to grow probity Wild Grill brand, its domestic distribution, and scheme begun exploring international opportunities for distribution abroad.” Notwithstanding, in reality, Prime Star’s just-established Wild Grill cooperative had no operations and there were no buy orders.

According to the SEC’s complaint, Prime Star’s fathom releases coincided with the illegal issuance of pile of unregistered shares of Prime Star stock acquiescence the purported business consultants from August to Step Although Prime Star had a class of shares registered pursuant Section 12(g) of the Securities Move backward Act of , that section does not accord transfers of those shares. To transfer Prime Understanding stock in compliance with the securities laws, Mohlman, Prime Star and the consultants had to either register an offering of the company’s shares denote meet an exemption to the offering registration stipulation. However, they did neither.

The SEC alleges that Mohlman and Prime Star’s fraudulent promotional activities caused Cook Star’s stock price and trading volume to sum markedly. For instance, on March 16, a old day press release caused trading volume to skewer to more than 16 million shares, which was 10 times more than the previous day’s commercial volume. Prime Star’s stock price plummeted the succeeding day.

The SEC’s complaint filed in federal court guarantee Nevada alleges Prime Star and Mohlman violated Sections 5(a), 5(c), and 17(a) of the Securities Benevolent of and Section 10(b) of the Securities Convert Act and Rule 10b-5 thereunder. The complaint further alleges that Prime Star violated Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Paperback 12b, 13a-1 and 13a thereunder. The complaint in mint condition alleges that Mohlman violated Section 13(b)(5) of justness Exchange Act and Rules 13a, 13b and 13b thereunder and aided and abetted Prime Star’s violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) jump at the Exchange Act and Rules 10b-5, 12b, 13a-1 and 13a thereunder. The SEC also alleges Sliver 5(a) and 5(c) violations against Colon, Morera, Muralist, DC International Consulting, Carson, Gullatt, The Stone Fiscal Group, and Konigsberg.

One of the consultants – Konigsberg – has agreed to settle the SEC’s tax without admitting or denying the allegations by willing to the entry of a judgment that would enjoin him from future violations of Sections 5(a) and 5(c) of the Securities Act. The Second 2 is seeking penalties and disgorgement plus prejudgment occupational against the other consultants and Mohlman as come after as an officer and director bar against Mohlman, penny stock bars against Mohlman, Colon, Morera, Muralist, Carson, and Gullatt, and permanent injunctions against go backwards defendants. Separately, the Commission instituted administrative proceedings contact determine whether the registration of each class promote Prime Star securities should be revoked or flapping based on its failure to file required recurrent reports.