Penny Stock Peddling New Jersey Executives Allegedly Issued False Press Releases to Inflate Stock Prices

investor rights attorneyOn November 21, the Securities and Exchange Commission (SEC) charged A father-and-son executive duo at a New Jersey-based penny stock company were charged on November 21 by the Securities and Exchange Commission (SEC) for issuing false and misleading press releases while allegedly stealthily selling thousands of their own stock shares into the market, according to SEC documents.

The pair has reportedly agreed to pay nearly $325,000 and accept officer-and-director bars to settle the SEC’s charges.

The SEC documents further allege that Conolog Corporation’s public filings state that it produces communications equipment primarily for use by electric utilities, fiber optic service providers, and the military, and that Conolog allegedly issued three consecutive press releases in early 2010 with crooked information at the request of chairman and then-CEO Robert Benou with assistance from his son and company president Marc Benou.

 Among the company’s misrepresentations were that Conolog had allegedly secured $1.9 million in new equipment orders when, in reality, only $50,000 worth of new orders had been received at the time.

Conolog also allegedly created the illusion that it had developed new fiber optic technology that was fully vetted and ready for commercial use and sale, the SEC further notes.

Marc Benou reportedly said that it “surpassed our expectations in field tests” when in truth, there had been no independent third-party testing as implied in the press release.  The supposed “testing” was simply an in-house demonstration of the product.

Investment Fraud Lawyers Investigating

The Peiffer Rosca Wolf investment recovery lawyers recurrently represent investors who lose money as a result of investment misrepresentation. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment misrepresentation or misconduct may contact the investment recovery lawyers at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1225 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.