Smokefree CEO Settles With SEC In Wake Of Fraud Sting

Law360, New York (September 14, 2011, 4:33 PM EDT) -- The CEO of a penny stock company that makes smoke-free cigarettes agreed Tuesday to settle a U.S. Securities and Exchange Commission suit after he allegedly paid kickbacks to FBI agents posing as stock investors.

Thomas Schroepfer, who ran Las Vegas-based Smokefree Innotec Inc., is still wrangling over what he will pay the SEC to settle civil claims over the purported kickbacks he gave to agents posing as pension fund managers in an effort to boost his company's stock price. The terms of his penalty are under...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.