SEC Sues 3 over Forest Management Shares

MANHATTAN (CN) - Three men defrauded investors of $800,000 by selling shares of Forest Resources Management Corp., a shell company that "had no income or assets," the SEC claims in Federal Court. The SEC sued Forest's former officers Chaim Justman and William J. Reilly, and Pinchus Gold, Justman's business partner.

The SEC also says "Forest's false and misleading material misrepresentations and omissions about its business operations artificially increased demand for that stock."

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