DALLAS (CN) – Three stock promoters are running a pump-and-dump scam in Beverage Creations stock, “hyping the stock through spam emails and advertising mailers while reselling millions of shares in their own accounts for substantial profits,” the SEC says in Federal Court.
The SEC says the scam is continuing, as the six defendants still own millions of shares of Beverage Creations.
The company was in the red in December, when the each of the defendant’s companies bought 3.3 million shares of it, at 2 cents a share, in an illegal arrangement that claimed to be exempt from SEC registration, the SEC says. In short order, the defendants raked in $2.5 million by pushing the unregistered shares through deception, the SEC says.
Reynolds and Bellatalia already had been charged by the SEC with taking $3.4 million in illegal profits by pushing unregistered shares of six companies, the SEC says.
Named as defendants are Jason Wynn, 25, of Plano, Texas, sole owner of Wynn Industries; Carlton Fleming, 47, of McKinney, a former stock broker and managing member of Thomas Wade Investments; and Ryan M. Reynolds, 36, of Dallas, who was barred from the brokerage industry in 2003 and is sole owner of Bellatalia.