SEC Accuses Microcaps Of Improper Offerings

Law360, New York (August 7, 2008, 12:00 AM EDT) -- Six microcap companies have been accused by the U.S. Securities and Exchange Commission of orchestrating and carrying out a scheme to boost their revenues by selling improperly registered stocks to investors.

The SEC said on Thursday that it had filed four separate enforcement actions against six companies and four individuals, alleging that the companies, plagued by sagging profits, held public offerings aimed at flooding the market with shares through employee stock option programs.

“In bringing these charges, the Commission is sending the clear message that it...
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