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SEC Sues Investment Firm For $1.9M “Scalping” Scheme

Law360 (March 10, 2006, 12:00 AM EST) -- A Dallas investment-advisory firm and its president have been charged by the U.S. Securities and Exchange Commission with illegally garnering $1.9 million in a fraudulent “scalping” scheme that involved simultaneously marketing and selling penny stocks.

According to the suit, filed in a Dallas federal court this week, BMA Ventures, Inc. president and owner William Robert Kepler urged investors to buy penny stocks – stocks costing less than $5 per share – by “blast faxing” thousands of fraudulent newsletters.

From January 2004 through March 2005, says the...
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