SEC Seeks $3M Penalty Against Energy Startup's Agent

Law360, New York (June 21, 2011, 5:38 PM EDT) -- The U.S. Securities and Exchange Commission asked a California federal court Monday for a nearly $3 million penalty for an agent who helped a purported energy company raise millions of dollars by fraudulently claiming to own technology capable of converting coal into biodiesel fuel.

The regulator said in a motion for summary judgment that Paul R. Fraley, who served as an agent for Nova Gen Corp. and its CEO Margaret Grey, falsely claimed the company had the technology and a plan to increase revenues when no...
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