SEC v. Wall Street Capital Funding LLC; Philip Cardwell; Roy Campbell; and Aaron Hume, No. LR-22125, Southern District of Florida (Oct. 13, 2011) — Press Release
raw: Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume
Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume, No. LR-22125 (Oct. 13, 2011)
Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume were ordered to pay $300,000 in penalties and disgorgement for orchestrating a penny-stock fraud by distributing misleading promotional materials, and were permanently banned from penny stock dealings.
The SEC charged Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. The defendants were accused of distributing misleading promotional materials, including 'Wall Street News Alerts,' for sham energy companies like PrimeGen Energy Corp. As part of a settlement, they consented to judgments requiring $300,000 in combined disgorgement and penalties, and permanent bans from promoting or engaging in any penny-stock activities.
Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume were accused of orchestrating a penny-stock fraud by distributing misleading 'Wall Street News Alerts' that falsely promoted sham energy companies like PrimeGen Energy Corp. The defendants concealed their financial ties to these companies and knowingly published fabricated positive reports despite clear red flags. The SEC charged them with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934. As part of a settlement, they consented to judgments requiring $300,000 in combined disgorgement and penalties, and permanent bans from promoting or engaging in any penny-stock activities. The defendants neither admitted nor denied the allegations, and the judgments were entered by Judge Donald L. Graham in the Southern District of Florida on October 13, 2011. The SEC's action was litigated by Todd D. Brody and Daniel R. Walfish, and originated from an investigation handled by Celeste Chase and Mr. Walfish, all of the SEC's New York Regional Office.
Exhibits & Attached Documents (5)
- complaint defendants Wall Street Capital Funding LLC (“WSCF”), Philip Cardwell (“Cardwell”), Roy
- judgment DEFENDANT W ALL STREET CAPITAL FUNDG G LLC
- judgment CASE NO. 114 0413-CW -GkAHAM /GOO DM AN
- judgment FW AL JUDGM ENT AS TO DEFENDANT ROY CAU BELL
- judgment FINAL JUDGM ENT AS TO DEFENDANT AARON HUM E
Extracted insights
- $300K $300,000 $100K–$1M
- organization Defendants
- person Defendants
- SEC entered judgments against Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume
- defendants consented to judgments
- penny-stock promoters repackaged news issued by a series of sham energy companies
SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 22125 / OCTOBER 14, 2011 SEC v. Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume, Civil Action No. 11-cv-20413-DLG (S.D. Fla.) On October 13, 2011 the U.S. District Court for the Southern District of Florida entered judgments against a group of penny-stock promoters arising out of their repackaging of "news" issued by a series of sham energy companies. The judgments, which the defendants consented to as part of a settlement with the Commission, require them to pay penalties and to disgorge profits from their illicit activities. The judgments also permanently ban the defendants from touting and other dealings involving penny stocks. The judgments came in a civil action that the Commission filed earlier this year against Miami-based stock-touting company Wall Street Capital Funding LLC (WSCF) and its principals â" owners Philip Cardwell and Roy Campbell and their associate Aaron Hume. In its Complaint initiating the action, the SEC alleged that the defendants were in the business of distributing promotional materials styled as "Wall Street News Alerts" for penny-stock companies. According to the SEC, one such company, PrimeGen Energy Corp., purported to have great success in drilling for oil in 2009 and 2010. The SEC alleged, however, that PrimeGen was phony: its corporate headquarters were a rented mailbox in a UPS Store opened with a do-not-forward instruction; its phone line was unattended; and its web page was generated by copying the source code from another company's web site. As alleged in the Complaint, WSCF's "investment opinions," emails, and web profiles typically expressed positive opinions about penny-stock companies, their business prospects, and the future direction of their stock price. WSCF, according to the Complaint, created the misleading appearance of an independent basis for its statements even though it was merely repeating the penny-stock companies' claims. Moreover, the SEC alleged, even when the defendants received ample warning signs that a scam was afoot, they always did the same thing: they closed their eyes and published. The SEC's Complaint was filed February 7, 2011 in the U.S. District Court for the Southern District of Florida. The Complaint charged Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, which prohibit fraudulent conduct in connection with securities transactions. Judge Donald L. Graham presided over the action, No. 11-cv-20413-DLG. The judgments imposed by Judge Graham require the defendants, among other things, to pay penalties and disgorgement totaling $300,000, and permanently bar them from promotional activities and other dealings involving penny stocks. The defendants consented to the judgments without admitting or denying the SEC's allegations. The SEC's action was litigated by Todd D. Brody and Daniel R. Walfish, and originated from an investigation handled by Celeste Chase and Mr. Walfish, all of the SEC's New York Regional Office. SEC Complaint Final Judgment as to WSCF Final Judgment as to Cardwell Final Judgment as to Campbell Final Judgment as to Hume
SECURITIES AND EXCHANGE COMMISSION LITIGATION RELEASE NO. 22125 / OCTOBER 14, 2011 SEC v. Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume, Civil Action No. 11-cv-20413-DLG (S.D. Fla.) On October 13, 2011 the U.S. District Court for the Southern District of Florida entered judgments against a group of penny-stock promoters arising out of their repackaging of "news" issued by a series of sham energy companies. The judgments, which the defendants consented to as part of a settlement with the Commission, require them to pay penalties and to disgorge profits from their illicit activities. The judgments also permanently ban the defendants from touting and other dealings involving penny stocks. The judgments came in a civil action that the Commission filed earlier this year against Miami-based stock-touting company Wall Street Capital Funding LLC (WSCF) and its principals â" owners Philip Cardwell and Roy Campbell and their associate Aaron Hume. In its Complaint initiating the action, the SEC alleged that the defendants were in the business of distributing promotional materials styled as "Wall Street News Alerts" for penny-stock companies. According to the SEC, one such company, PrimeGen Energy Corp., purported to have great success in drilling for oil in 2009 and 2010. The SEC alleged, however, that PrimeGen was phony: its corporate headquarters were a rented mailbox in a UPS Store opened with a do-not-forward instruction; its phone line was unattended; and its web page was generated by copying the source code from another company's web site. As alleged in the Complaint, WSCF's "investment opinions," emails, and web profiles typically expressed positive opinions about penny-stock companies, their business prospects, and the future direction of their stock price. WSCF, according to the Complaint, created the misleading appearance of an independent basis for its statements even though it was merely repeating the penny-stock companies' claims. Moreover, the SEC alleged, even when the defendants received ample warning signs that a scam was afoot, they always did the same thing: they closed their eyes and published. The SEC's Complaint was filed February 7, 2011 in the U.S. District Court for the Southern District of Florida. The Complaint charged Wall Street Capital Funding LLC, Philip Cardwell, Roy Campbell, and Aaron Hume with violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, which prohibit fraudulent conduct in connection with securities transactions. Judge Donald L. Graham presided over the action, No. 11-cv-20413-DLG. The judgments imposed by Judge Graham require the defendants, among other things, to pay penalties and disgorgement totaling $300,000, and permanently bar them from promotional activities and other dealings involving penny stocks. The defendants consented to the judgments without admitting or denying the SEC's allegations. The SEC's action was litigated by Todd D. Brody and Daniel R. Walfish, and originated from an investigation handled by Celeste Chase and Mr. Walfish, all of the SEC's New York Regional Office. SEC Complaint Final Judgment as to WSCF Final Judgment as to Cardwell Final Judgment as to Campbell Final Judgment as to Hume