SEC Charges Florida-Based Company and Its Founder With Running Boiler Room Stock Scheme
The Securities and Exchange Commission (“SEC”) has charged Fort Lauderdale-based First Resource Group LLC (“First Resource”) and its principal, David Stern (“Stern”) of Tamarac, Florida, with running a boiler room stock scheme.
The SEC’s complaint alleges that First Resource employed telemarketers who fraudulently solicited investors to purchase securities in two microcap companies, TrinityCare Senior Living, Inc. and Cytta Corporation. The SEC claims that First Resource’s employees cold-called potential investors on a list given to them by Stern, and using a script prepared by Stern, falsely touted the stock in the two companies by providing grossly inflated sales projections.
The SEC also claims that, while Stern was selling these securities, he also purchased small amounts of the stock at prices above the market to raise the market price and to create the false impression of legitimate trading activity. The complaint asserts that Stern then took advantage of the manipulated stock prices by selling large amounts of First Resource’s shares at the fraudulently elevated prices and then transferred the proceeds of these stock sales from First Resource’s brokerage accounts to his personal account.
Investors nationwide who have incurred investment losses, and who may have a FINRA arbitration claim, may contact the Florida securities lawyers at McCabe Rabin, P.A. for a free and confidential consultation by calling toll free at 877.915.4040 or by e-mail to firstname.lastname@example.org.