SAN FRANCISCO (CN) – A federal judge Monday entered final judgment of $1.6 million against the CFO of eAdGear, in an SEC case accusing the company of running a $130 million pyramid scheme in Internet ads.
The California-based company claimed to use search engine optimization to boost clients’ rankings on the Internet. It said it had more than 66,000 accounts and shared 70 percent of its revenue with its investors, the SEC said in its September 2014 lawsuit.
Actually, more than 99 percent of the company’s money came from the investors themselves, the SEC said.
U.S. District Judge Richard Seeborg granted the SEC’s request for a preliminary injunction against eAdGear in December 2014. On Monday he entered final judgment against Francis Yuen, the company’s CFO, and his wife, Laurata Chan.
Seeborg enjoined Yuen from engaging in fraud and from selling eAdGear securities, and ordered Yuen and Chan to pay $1.6 million to the SEC.
Neither side’s lead counsel immediately responded to an email requesting comment Monday afternoon.
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