Feds file charges against 13 for penny stock fraud

[December 02, 2011]  BOSTON (AP) -- Federal officials are charging a group of corporate executives, lawyers and stock promoters with fraud to spur investments in penny stocks.

Prosecutors on Thursday charged 13 defendants who agreed to pay kickbacks to an undercover FBI agent they believed was an investment fund representative who would buy stock in certain companies.

The Securities and Exchange Commission also filed a civil case against four people, alleging they used kickbacks to manipulate trading in "microcap," or penny stocks.

The SEC suspended trading in seven microcap companies involved in the kickback-for-investment scheme. They include 1st Global Financial Inc. of Las Vegas, Augrid Global Holdings Corp. of Houston, ComCam International Inc. of West Chester, Pa., MicroHoldings US Inc. of Vancouver, Wash. and Outfront Companies based in Florida.

[Associated Press]

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