SEC Obtains Final Judgment Entered Against 8000, Inc. CEO, Thomas Kelly
On October 9, 2014, the Securities and Exchange Commission (the “SEC”) announced a Final Judgment had been entered against Thomas Kelly, the former Chief Executive Officer of 8000, Inc. 8000, Inc. was formerly quoted with the symbol (“EIGH”) on OTC Pink operated by OTC Markets Group.
Kelly along with securities attorney, Carl N. Duncan, Jonathan Bryant, and 8000, Inc. were defendants in an SEC action filed on September 27, 2012.
The SEC’s complaint alleged that the defendants participated in a scheme to manipulate the trading volume and price of 8000 Inc.’s common stock by disseminating false information about the company and simultaneously selling, or facilitating the sale of its securities which were not for sale to the general public. According to the complaint, from November 2009 through October 2010, Kelly and Bryant disseminated financial reports and press releases falsely representing that 8000, Inc. had millions of dollars in capital financing and revenues when, in fact, the company had neither.
According to the SEC Charges, 8000, Inc.’s stock price rose based on the false information they were disseminating, Bryant is alleged to have sold 56.8 million “restricted” shares of 8000, Inc. into the market with the assistance of Carl Duncan who provided false legal opinions removing the restrictions, and Kelly to have bought and sold the company’s securities in the secondary market. The complaint alleged that the defendants’ scheme increased the volume of trading in 8000, Inc. by 93% and the company’s stock price from less than $0.01 per share to $0.42 per share between November 2009 and October 2010.
The Final Judgment orders Kelly to disgorge the $415,592 in profits that he realized from trading in 8000, Inc.’s securities and to pay $ 46,697 in pre-judgment interest. The Final Judgment follows the Judgment that the court entered against Kelly on June 6, 2013, with Kelly’s consent and without him admitting or denying the allegations in the Commission’s Complaint. That Judgment permanently enjoins Kelly from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder. It also permanently bars Kelly from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act, and permanently bars him from participating in an offering of a penny stock.
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 firstname.lastname@example.org 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 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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