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SEC Busts Boss of Struggling Mining Company

COEUR D'ALENE, Idaho (CN) - The former CEO tried to keep Atlas Mining afloat by selling millions of unregistered shares, the SEC claims in Federal Court. The agency claims William Jacobson, CEO of the company now known as Applied Minerals, issued 14.6 million "S-8" shares people who were not qualified to receive them, then sold them illegally. S-8 shares can be issued only to a company's consultants.

The SEC claims Jacobson "parked" 9.9 million of the company's 10 million shares with family members, friends and affiliates, then sold some of the shares to raise capital - which is prohibited for S-8 shares - and funneled the $805,000 from the stock sales back into the struggling company.

Along the way, he falsified public filings and the company's books and records, the SEC says.

The agency wants Jacobson barred from participating in offers of penny stock and civil penalties.

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