SEC Sues GlobeTel, Claiming $120M Fraud Scheme

Law360, New York (May 5, 2008, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission is suing three GlobeTel Communications Corp. executives, claiming that they fabricated roughly $120 million of business to boost the company's stock price and illegally sold more than $1.6 million in stock.

The complaint, lodged in the U.S. District Court for the Southern District of Florida, accuses GlobeTel's two former chief financial officers, Thomas Y. Jiminez and Lawrence E. Lynch, of participating in a scheme to inflate GlobeTel's revenue and then conceal millions of unpaid bills.

The SEC also claims Timothy...
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