U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21591 / July 9, 2010
Securities and Exchange Commission v. InvestSource, Inc. and Songkram Roy Sahachaisere, United States District Court for the Central District of California, Case No. SACV 10-1041 DOC (RNBx) (filed July 9, 2010).
SEC CHARGES HUNTINGTON BEACH-BASED STOCK PROMOTER WITH FRAUD
The Securities and Exchange Commission today filed a civil action against a Huntington Beach-based penny stock promoter, Songkram Roy Sahachaisere, and his company, InvestSource, Inc. for committing fraud while promoting stock of their clients through massive email campaigns.
In its complaint filed in the United States District Court for the Central District of California, the SEC alleges that Sahachaisere, age 40, and InvestSource provide "investor relations services" by touting various penny stocks in its daily email newsletter, called the "Daily Digest," and by posting company profiles on its website. From January 2008 to March 2009, defendants sent nearly 450 email messages publicizing these penny stocks to over 24 million recipients, receiving clients' stock as compensation. The complaint focuses on seven specific penny stocks that defendants touted in which, the SEC alleges, defendants made misleading statements regarding the nature of their compensation on InvestSource's website and in the promotional emails. The defendants also failed to disclose that they were selling the very securities they were recommending investors buy. According to the complaint, between April 2008 and March 2009, defendants sold over 5 million shares of these seven clients through one or more of their approximately 36 brokerage accounts, illegally reaping profits of at least $276,000.
The SEC's complaint charges InvestSource and Sahachaisere with violating the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. It also charges them with violating the antitouting provisions contained in Section 17(b) of the Securities Act. The SEC's complaint seeks permanent injunctions, disgorgement with prejudgment interest, and civil monetary penalties against both defendants. In addition, the SEC seeks penny stock and officer and director bars against defendant Sahachaisere.
See Also: SEC Complaint