Court Enters Final Judgment Against Fraudster Bruce Strebinger
The Securities and Exchange Commission (SEC) announced on March 21, 2016 that on March 15, 2016, the Honorable Leigh Martin May of the United States District Court for the Northern District of Georgia entered a final judgment against defendant Bruce Strebinger. The final judgment imposes on Strebinger a permanent injunction against future violations of certain antifraud and reporting provisions of the federal securities laws, imposes a penny stock bar and orders that he pay disgorgement in the amount of $1,515,640.
In its Complaint, the SEC alleged that after Strebinger facilitated a reverse merger between shell company Americas Energy Company and a private start-up company in Knoxville, Tennessee, he and Brent Chapman each acquired substantial positions of over 5% of the common stock without publicly disclosing their beneficial ownership stake as required under the federal securities laws. Meanwhile, Strebinger and Chapman orchestrated an aggressive campaign to promote Americas Energy stock to prospective investors through blast e-mails and direct mailings of stock promotion reports that contained false and misleading statements.
The SEC also alleged in its complaint that as the scheme was attracting new investors and Americas Energy’s share price was significantly increasing, Strebinger and Chapman were secretly selling their shares through an intricate web of offshore corporations, foreign accounts, and financial institutions located in Canada, Nevis, Panama, Switzerland, and the Turks and Caicos Islands. Strebinger and Chapman generated proceeds of more than $17 million through their elaborate scheme.
The final judgment permanently enjoins Strebinger from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(d) and 20(b) of the Securities Exchange Act of 1934 and Rules 10b-5, 13d-1, and 13d-2(a) thereunder. In addition, the final judgment imposes a penny stock bar and orders Strebinger to pay $1,515,640 in disgorgement. Strebinger consented to the entry of the final judgment. The Commission’s litigation continues against Brent Howard Chapman and Lance Investments S.A.
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 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.