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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20192 / July 11 , 2007

SEC v. Roderic Lee Boling III, Anna August Boling, Jeffrey Scott Mills and Direct Results of Sweetwater, LLC, Civ. No. 06-1329 (RMC) (D.D.C., filed July 27, 2006); U.S. v. Boling, et al., Crim. No. 06-228 (ESH) (D.D.C., filed July 27, 2006).

Florida Promoters and the Voice Behind "VICEMAIL" Pump and Dump Scheme Plead Guilty

The Securities and Exchange Commission today announced that former husband-and-wife Roderic L. and Anna A. Boling of Altamonte Springs, Florida and stock promoter Jeffrey S. Mills of Longwood, Florida pled guilty on July 3, 2007, to federal charges for their roles in the broadcasting of hundreds of thousands of fraudulent "vicemail" stock tip messages. The messages, which were left on telephone voicemail recording machines throughout the country, were designed to deceive a recipient into believing he had inadvertently received a "hot" stock tip meant for a close friend of the caller.

Roderic Boling and Jeffrey Mills each pled guilty before District Judge Ellen Segal Huvelle of the U.S. District Court for the District of Columbia to one count of securities fraud and one count of conspiracy to commit securities fraud in connection with the fraudulent "vicemail" scheme. Anna Boling pled guilty to misprision of a felony for her role in concealing from a grand jury and law enforcement officials her own activities, as well as those of her then-husband.

According to the statement of offenses, Mills was hired in July and August 2004 to promote five microcap stocks. Mills recruited Roderic Boling to record and distribute the fraudulent voicemails and together they designed and created the scripts for the messages with the intent of fraudulently inducing prospective investors into purchasing the securities touted in the voicemails at inflated prices. Roderic Boling asked his then-wife Anna Boling to record the fraudulent messages, which she knew would be distributed to hundreds of thousands of persons across the country. After Anna Boling learned that her mother and sister had been subpoenaed to testify before a federal grand jury, she falsely told them that she had not recorded the messages, and caused her relatives to convey that false information to the grand jury.

At sentencing, Roderic Boling and Jeffrey Mills each face a maximum term of imprisonment of 25 years, and a fine of $5,000,000. Anna Boling faces a maximum term of imprisonment of 3 years and a fine of $250,000. Sentencing dates have not yet been set by the court.

The Commission first cautioned the public about these and similar messages touting microcap stocks in an August 2004 Investor Alert. On May 3, 2005, the Commission filed a settled civil action against the telemarketer and associated companies for its role in broadcasting the "vicemail" stock tips. The Commission's civil action against Roderic Boling, Anna Boling and Jeffrey Mills is pending.

For additional information, see Litigation Release No. 19213 (May 3, 2005) and Litigation Release No. 19779 (July 27, 2006) at:

http://www.sec.gov/litigation/litreleases/lr19213.htm
http://www.sec.gov/litigation/litreleases/2006/lr19779.htm

The SEC's investor alert is at:

http://www.sec.gov/investor/pubs/wrongnumberscam.htm.

See also Press Release 2005-70 (May 3, 2005) and 2006-124 (July 27, 2006).

 

http://www.sec.gov/litigation/litreleases/2007/lr20192.htm


Modified: 07/11/2007