Phillip Frost, a Miami-based biotechnology billionaire, and nine other people are facing U.S. Securities and Exchange Commission claims that they generated more than $27 million from unlawful stock sales in long-running pump-and-dump schemes that left investors with virtually worthless stock.
Barry Honig of Boca Raton, Florida led the group by buying large blocks of penny stocks at steep discounts from 2013 to 2018, according to the allegations in a lawsuit filed in federal court in Manhattan. The group would then promote the companies to drive up the prices, while secretly selling their shares.
The agency said the group manipulated ...
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