David Aubel and Robert Raffa Charged with Stock Manipulation Scheme
On April 7th, 2016, the Securities and Exchange Commission (SEC) announced fraud charges against two men behind a scheme to manipulate the stock of Green Energy Renewable Solutions, Inc., a company that purported to be in the business of developing waste processing and recycling facilities.
The SEC’s complaint, filed in federal court in the District of Massachusetts, charges David Aubel, of Florida, and Robert Raffa, of New Hampshire, for their roles in the alleged scheme. In a parallel case, the U.S. Attorney’s Office for the District of Massachusetts today filed charges against the two men.
According to the SEC’s complaint:
- Aubel and Raffa concealed their ownership of a significant percentage of Green Energy’s stock in violation of SEC rules, paid stock promoters in 2012 and 2013 to tout Green Energy as a legitimate company with growing operations, and engaged in manipulative trading.
- Aubel and Raffa paid a kickback to an individual they believed to be a stock broker in exchange for the broker’s agreement to buy Green Energy shares from them.
- Green Energy’s stock price and trading volume increased as a result of the manipulative trading and promotional campaign, and Aubel and Raffa profited, selling the Green Energy stock they controlled for more than $1.6 million.
The SEC’s complaint charges Aubel and Raffa with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933 (“Securities Act”); the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act; and the beneficial ownership disclosure provisions in Sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, and 16a-3 thereunder. The SEC seeks permanent injunctions, penalties, and the return of allegedly illicit earnings plus interest.
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.