SEC Obtains Settlements in Joseph Meuse and Thomas Russo Shell Packing Case
The Securities and Exchange Commission has reached pathetic settlements with Joseph Meuse and Belmont Partners.The SEC announced $300,000 in settlements against a Virginia-based “shell packaging” company and its CEO who were charged with facilitating a penny stock scheme as well as a Bronx, N.Y.-based stock promoter who received proceeds from the fraud.
Marketing materials for Belmont Partners state that it had engaged in more than 100 reverse merger transactions.
Public shells sell for as much as $450,000.Many of shells taken over by Meuse were dormant for years raising questions about the validity of his control of the issuers.In one instance, Meuse hand wrote the corporate reinstatement for Nations Bank holding company, Harbour Capital. Meuse restructured the issuer and it was sold as a public shell company for use in reverse merger transaction.
In a final judgment ordered January 15, 2014 by the Honorable Shira A. Scheindlin of the U.S. District Court for the Southern District of New York, Belmont Partners and Joseph Meuse agreed to pay $224,500. Meuse additionally has agreed to be barred from the penny stock business or from serving as an officer or director of a public company for at least five years. In a separate judgment, Thomas Russo, who was named as a relief defendant for the purposes of recovering ill-gotten gains from the scheme in his possession, agreed to pay $70,075.
Belmont Partners and Meuse agreed to be permanently enjoined from violating Section 5 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. They neither admitted nor denied the SEC’s allegations.
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 www.securitieslawyer101.com. 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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