U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19670 / April 26, 2006
SEC v. New Energy Corp., Tor Ewald, Geneva Financial Ltd., Marcelino Colt aka Marcelino Colt Vasquez, Magnum Financial, LLC, Michael S. Manahan, Bld Trust, Barclay Davis, Loretta Davis, Burke T. Maxfield, York Chandler, and Hector Campa Acedo, Civil Action No. CV-02-989-MMM (CWx) (C.D. Cal.)
Perpetrators of Pump and Dump Manipulation Scheme Sentenced to Federal Prison
The Securities and Exchange Commission announced that the Honorable R. Gary Klausner, United States District Judge for the Central District of California, sentenced three individuals for their participation in a "pump and dump" scheme to manipulate over the Internet the price of securities of New Energy Corporation, formerly based in San Diego, California, that was the subject of a Commission enforcement action and trading suspension.
Ernest Paul Lampert, a former fugitive, was sentenced in January 2006 to serve nine years in federal prison. Lampert was charged with securities fraud for causing false and misleading press releases and a research report about New Energy to be issued to the public via the Internet, and for violating a prior judgment in a criminal case. Marshall Algird Zolp, aka Marcelino Colt, a former fugitive, was sentenced in December 2005 to serve six years. Zolp was charged with securities fraud for causing false and misleading press releases and a research report about New Energy to be issued to the public via the Internet. Tor Ewald, of San Diego, California, New Energy's former secretary and treasurer, was sentenced in December 2005 to serve three months. Ewald was charged with securities fraud for causing false and misleading press releases and a research report about New Energy to be issued to the public via the Internet, and with obstruction of justice and making a false statement under oath to the Commission.
Previously, the Commission filed a complaint in federal court in Los Angeles on February 1, 2002, which alleged that New Energy, Ewald, Colt and his firm, Geneva Financial Ltd., and Magnum Financial LLC dba Stratos Research LLC, and its president, Michael S. Manahan, violated the antifraud provisions of the Securities Exchange Act of 1934. Colt and Geneva were also charged with violating the antifraud provisions of the Securities Act of 1933. The complaint alleged that the defendants were part of a pump and dump scheme to manipulate New Energy's stock price during a one-month period ending on January 18, 2002, when the Commission suspended trading. The Commission obtained a final judgment against Colt and Geneva that permanently enjoined them from future violations of the antifraud provisions and imposed orders of disgorgement and civil penalties. The Commission obtained final judgments against New Energy, Ewald, Magnum, and Manahan that permanently enjoined them from future violations of the antifraud provisions and imposed civil penalties.
Prior to the entry of the permanent injunction in the New Energy case, Zolp had been enjoined by the Commission on four previous occasions. Separately, Zolp and Lampert had previously been criminally convicted in other securities fraud cases.