SEC Sues Unico, Advanced Cell Over Alleged Stock Scheme

Law360, New York (May 31, 2012, 3:46 PM EDT) -- Mining company Unico Inc. and biotechnology firm Advanced Cell Technology Inc. issued unregistered penny stocks through sham legal settlements in a long-running scheme, the U.S. Securities and Exchange Commission said Wednesday in a federal lawsuit in Florida.

Over several years, the companies issued a combined 9 billion shares through settlements in Florida state court designed to repay debts owed to various offshore penny stock financing companies, the SEC claims.

In reality, the financing companies diluted the shares, sold them to unwitting investors and moved the funds...
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