Pump & Dumper Just Won’t Quit, SEC Says

BROOKLYN (CN) - A securities recidivist who owes the SEC $5.3 million did it again, for $21 million this time, the SEC claims in court.

The SEC on Tuesday sued Gregg R. Mulholland, whom it describes in the federal complaint as "a recidivist who is past due on a $5,309,434.94 judgment owed to the Commission."

Mulholland, of Vancouver, B.C., was one of 13 people the SEC sued in 2011 in a pump-and-dump scam for stock in a sports drink company founded by Daniel "Rudy" Ruettiger, who inspired the movie "Rudy."

The SEC says Mulholland still owes that $5.3 million judgment, plus interest.

In the new lawsuit, it claims that Mulholland, a stock promoter, illegally dumped more than 83 million penny stock shares he "secretly obtained" through a web of at least 10 offshore companies.

Through these machinations he acquired 84 percent of the shares of Vision Plasma, with restricted legends, which he sold on Aug. 16, 2012, for $21,645,753.

The SEC seeks disgorgement, penalties and an injunction ordering him not to do it again - though that didn't work all that well the first time.

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