SAN FRANCISCO (CN) - The CEO of a San Francisco-based penny stock made $300,000 in a pump-and-dump scheme, the SEC claims in court.
The SEC sued Joseph A. Noel, founder and CEO of YesDTC, on Monday in Federal Court.
YesDTC "purports to be a direct-to-consumer marketing company specializing in
Internet and retail marketing programs and infomercials," the SEC says in the lawsuit.
It claims he took YesDTC public in 2009 through a reverse merger with a public shell company, "covertly acquired" 40 million shares through a nominee company, then pumped the share price through false press releases, and dumped his own shares for a profit of more than $300,000.
"To conceal his sales, Noel sold the shares through a company he created in his teenage daughter's name without disclosing as required that he was actually selling the shares," the SEC said in a statement.
It seeks disgorgement, penalties and an injunction.
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