Penny Stock Company, CEO Lose Appeal Over Jury Verdict, Remedies

Sufficient evidence supported a jury verdict against penny stock company Halitron Inc. and its CEO for securities fraud, the Second Circuit ruled Monday.

The trial judge properly ordered disgorgement, civil penalties, and injunctions, the appeals court said in an unpublished opinion by Judges Michael H. Park, Myrna Pérez, and Alison J. Nathan.

• The Securities and Exchange Commission alleged Halitron, which called itself an “equity holding company” and purported to operate display signage and scrapbooking businesses, had conducted no meaningful operations since 2017—but raised hundreds of thousands of dollars from investors
• The US District Court for the District of Connecticut assessed ...