Penny Stock Peddling New Jersey Executives Allegedly Issued False Press Releases to Inflate Stock Prices
On 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 Wolf Carr & Kane 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 Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.