Enforcement Action in Potential “Pump and Dump “Market Manipulation Scheme. SEC takes Aim.

Three penny-stock companies and their CEO – Cherubim Interests, Inc. (CHIT), PDX Partners, Inc. (PDXP), Victura Construction Group, Inc. (VICT), and Patrick Jevon Johnson  were the subject of an SEC action to enforce  subpoenas this week. SEC v. v. Cherubim Interests, Inc., PDX Partners, Inc., Victura Construction Group, Inc., and Patrick Jevon Johnson, No. 2:18-mc-00175 (C.D. Cal. filed December 21, 2018)

According to the SEC’s application as described in Litigation Release 24380 dated 26 December 2018,  on December 21, 2018 The SEC announced it sought enforcement of its subpoenas in the   U.S. District Court for the Central District of California.

The subject of the investigation is to determine whether individuals or entities engaged in a potential pump-and-dump scheme. The securities implicated were CHIT, PDXP, and VICT.

The SEC suspended trading in their securities on February 15, 2018 for 10 days.

The Litigation Release stated that the SEC suspected that these companies may have published false public statements in January 2018 to “pump” the stock price. The alleged claim was that the companies acquired hundreds of millions of dollars of “AAA-rated” assets, even though the companies appeared to have little resources. After increases in market prices for those companies securities spiked, an entity associated with the companies allegedly “dumped” shares in the same companies.http://www.brokerfraud.net

Subpoenas were served in May 2018 but were allegedly not fully complied with.

A court order was requested by the SEC compelling CHIT, PDXP, VICT, to y comply with the  subpoenas.

Anthony M. Abraham, Esq., PC is experienced in churning, unauthorized trading claims and stock market fraud claims. If you suspect that your account has been manipulated through fraud or churned, please call us Toll Free at 1-877-430-4877 for a Free Consultation or email us at Anthony@Abrahamattorneys.com.http://www.brokerfraud.net