SEC Charges Company, Owner In $10 Million Penny Stock Scheme

The Securities and Exchange Commission alleged Aug. 22 that a New York-based firm and its owner engaged in a penny stock scheme in which they resold billions of unregistered shares in approximately 100 small companies that they initially acquired at “deep discounts” (SEC v. Bronson).

In its complaint, filed in the U.S. District Court for the Southern District of New York, the SEC alleged that defendants Edward Bronson and E-Lionheart Associates LLC made more than $10 million through the illegal scheme. Another firm owned and controlled by Bronson, Fairhills Capital Inc., was named as a relief defendant.

According ...