Penny Stock Traders Ordered to Pay $11 Million in SEC Probe

Penny stock traders the Securities and Exchange Commission says illegally failed to register as securities dealers have been ordered to pay back $11 million in net profits and interest.

A federal judge barred Carebourn Capital LP and managing member Chip Rice from participating in penny stock offerings for three years, and issued permanent injunctions prohibiting them from further violating federal securities laws alleged by the SEC in its complaint.

“Mr. Rice has extensive experience acting as an unregistered dealer, and the Court finds that it is reasonably likely that he will engage in future violations if injunctive relief is not ...