SEC Suit Against Alleged Penny Stock Schemers Survives Dismissal

Feb. 12, 2024, 10:30 PM UTC

The Securities and Exchange Commission’s fraud case against two individuals and the business they control will proceed in a suit that more broadly takes aim at parties allegedly involved in a multi-million dollar pump-and-dump scheme.

Robert and Linda Malin, who control Blue Citi LLC, must face allegations related to their role in a plot to use and then dump penny stocks after artificially inflating their trade volume and paying kickbacks to co-defendant Philip Verges.

The Malins’ bid to toss the claims against them was rejected on Feb. 9 by Judge Sidney Fitzwater of the US District Court for the Northern ...

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