(CN) – The SEC on Thursday suspended trading in the securities of Florida-based GenX Corp. until it could sort out questions about the accuracy of the music production company’s promotional materials.
One brochure titled “World of Investment” was mailed to more than 1 million prospective investors and claims the company has partnerships with several major recording artists, including Kanye West, T.I. and Pharrell Williams, the SEC said in a statement.
“When there are questions about the accuracy and adequacy of information pertaining to a public company, especially one that is new and thinly traded, there is a potential for market manipulation including pump-and-dump schemes,” said John Reed Stark, chief of the SEC’s Office of Internet Enforcement.
The trading suspension will last for 10 business days.