Penny Stock Investor Accused Of $9.1M Deceptive Ad Scheme

By Rachel Scharf (July 22, 2021, 7:08 PM EDT) -- A California penny stock investor was arrested Thursday and hit with parallel claims from the U.S. Securities and Exchange Commission and Brooklyn federal prosecutors alleging he illegally scored $9.1 million by manipulating share prices with deceptive advertisements.

The civil and criminal cases both accuse 48-year-old Laguna Hills resident Charlie Zaki Abujudeh of using a series of promotional campaigns to convince unwitting investors to buy shares in microcap companies he effectively controlled, jacking up the stock prices so that he could offload his own shares at a profit.

The SEC complaint alleges Abujudeh owned majority stakes in three microcap companies: medical device...

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