{"id":66380,"date":"2018-10-26T01:12:58","date_gmt":"2018-10-26T05:12:58","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=66380"},"modified":"2018-10-26T01:12:58","modified_gmt":"2018-10-26T05:12:58","slug":"orchestrator-of-microcap-fraud-scheme-barred-from-penny-stock-offerings-and-ordered-to-pay-80000-penalty","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/10\/2018\/orchestrator-of-microcap-fraud-scheme-barred-from-penny-stock-offerings-and-ordered-to-pay-80000-penalty.html","title":{"rendered":"Orchestrator of Microcap Fraud Scheme Barred from Penny Stock Offerings and Ordered to Pay $80,000 Penalty"},"content":{"rendered":"<p>(HedgeCo.Net) The orchestrator of a microcap fraud scheme who defrauded investors by directing the issuance of false press releases about the microcap company&#8217;s prospects and hiding his secret control of the company has been barred by a federal court from participating in penny stock offerings and ordered to pay an $80,000 penalty.<\/p>\n<p>In October 2017, the Securities and Exchange Commission charged John Madsen with masterminding a pump-and-dump scheme involving Nevada-based penny stock company, Andalusian Resorts and Spas, Inc. and with recruiting a strawman CEO, Bernard Fried, to conceal Madsen&#8217;s secret control of the issuer and his prior guilty plea to mail fraud. Fried, who pled guilty in a parallel criminal case, settled the SEC&#8217;s charges by consenting to the entry of a final judgment on January 11, 2018, which enjoined him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, barred him from serving as an officer or director of public companies or from participating in penny stock offerings, and ordered him to disgorge $3,311 in ill-gotten gains plus interest. The SEC obtained a default judgment against Andalusian on May 10, 2018 that enjoined it from violating the antifraud provisions of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(HedgeCo.Net) The orchestrator of a microcap fraud scheme who defrauded investors by directing the issuance of false press releases about the microcap company&#8217;s prospects and hiding his secret control of the company has been barred by a federal court from [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-66380","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/66380","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=66380"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/66380\/revisions"}],"predecessor-version":[{"id":66381,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/66380\/revisions\/66381"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=66380"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=66380"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=66380"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}