AUSTIN (CN) - While head of United Consulting Corp., which became Stinger Systems, F. Douglas Murrell issued 10 million unregistered shares to his son, and sold on his own behalf 445,000 shares, not designated as freely tradable, to people who resold them on the Pink Sheets, the SEC claims in Federal Court. Murrell, 61, of Austin, is owner and operator of Capital Consulting Group. See federal complaint. Click headline to see another SEC complaint against Stinger Systems.
SEC Sues Stun-Gun Maker Stinger
ATLANTA, Jan. 29 (CN) - Stinger Systems and its CEO Robert Gruder defrauded the market and drove Stinger share price from $1.25 to $48.55 by misrepresenting Stinger's "flagship stun gun product," the SEC claims in Federal Court. Stinger and Gruder falsely claimed that the Bureau of Alcohol, Tobacco and Firearms had certified the gun; that Stinger shares would trade on the NASDAQ, rather than the Pink Sheets; and that the gun was "ready for sale and distribution" though it was not even ready for production, the SEC says.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.