BOISE (CNS) – The SEC claims two top bosses inflated the share price of a software company by 400 percent. The SEC sued PCS Edventures!.com, its CEO Anthony Maher and former CFO Shannon Stith in Federal Court. The company makes educational learning labs and software.
In 2007 PCS reported that it had secured a $7.2 million licensing agreement with a company in the Middle East, though it knew the company did not have the money, the SEC claims.
PCS then filed an 8-K form with the SEC, announcing the $7.2 million deal, and trumpeted it in misleading press releases, the SEC says.
PCS shares rose from 65 cents to $3.34 after the misleading announcements, the SEC says – up 414 percent.
Maher, 62, is CEO and chairman of the board. He has a B.A. in political science, the SEC says. Stith, 30, was CFO from August 2005 until January 2008.
PCS trades over the counter.
The SEC seeks an injunction and penalties.