SEC Suspends Citadel After Pumps and Dumps Report

SEC Trading Suspension
Securities Lawyer 101 Blog

On March 21, 2014, the Securities and Exchange Commission issued a trading suspension pursuant to Section 12(k) of the Securities Exchange Act of 1934 (the “Exchange Act”), of trading in the securities of Citadel EFT, Inc. (“Citadel”), of Oceanside, California.

The SEC suspended trading in the securities of Citadel because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company’s business operations and assets.

In particular, there are questions regarding the accuracy, completeness, and validity of Citadel’s several recent press releases, Form 8-Ks, and other public statements since January 2014 relating to transactions involving standby letters of credit (“SBLC’s”), see Prime Bank Instrument Fraud, (U.S. Department of the Treasury), (last visited Mar. 20, 2014) and Brazilian Letras Tesouro Nacional (“LTN’s”), see Frauds Related to Public Bonds, Tesouro Nacional (Brazil), (last visited Mar. 20, 2014).

Citadel is a Wyoming corporation based in Oceanside, California. It is quoted on OTC Link under the symbol CDFT. This order was entered pursuant to Section 12(k) of the Securities Exchange Act of 1934 (Exchange Act). The Commission cautions brokers, dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company. Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff in the Division of Trading and Markets, Office of Interpretation and Guidance, at (202) 551-5777. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to Citadel’s securities until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation which is in violation of the rule, the Commission will consider the need for prompt enforcement action.

The SEC ‘s trading suspension comes after a series of investigative reports were written by Janice Shell and published by  The reports raised concerns over statements made by Citadel concerning certain bonds it purported to hold.


For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit   This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.

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