SEC Files Subpoena Against Edward Panos and His Wife for Penny Stock Fraud
On August 25, 2016 the Securities and Exchange Commission (“SEC”) announced that it filed a subpoena enforcement action in the U.S. District Court for the District of Columbia against Edward Panos and his wife, Allison Panos, and various entities controlled by them.
According to the SEC’s application and supporting papers, the SEC is investigating potential violations of the federal securities laws in connection with numerous microcap and penny stock companies. The application alleges that Panos incorporated private companies with little or no operations or assets, orchestrated sham private offerings, and arranged for the companies to go public through the filing of false registration statements with the SEC. The SEC further alleges that Panos arranged reverse-mergers or other transactions through which he sold the public shells to private companies, and then participated in pump-and-dump schemes targeting those companies. This allowed him to reap significant profits by selling the shares he had acquired through his control of the public shells. The SEC’s staff is investigating the involvement of other persons and entities in these and related schemes.
As part of the investigation, the SEC staff served Edward Panos, Allison Panos, and the various entities controlled by them with subpoenas in April 2016, requiring the production of certain documents and compelling their testimony. According to the application, not a single document has been produced in response to the subpoenas, nor has Panos or Allison Panos appeared for testimony. The SEC’s application seeks an order compelling Panos, Allison Panos, and the various entities controlled by them to comply with the SEC’s subpoenas by producing documents and appearing for testimony. The SEC is continuing its fact-finding investigation and, to date, has not concluded that any individual or entity has engaged in wrongdoing.
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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Brenda Hamilton, Securities Attorney
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