UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21671 / September 28, 2010

SEC v. Richard Dean Carter, Civil Action No. 10-6145 (N.D. Ill.) (Gettleman, J.)

The United States Securities and Exchange Commission announced that on September 24, 2010 it filed a civil injunctive action against Richard Dean Carter. The Commission's complaint alleges that Carter perpetrated a microcap fraud on the market by providing information that appeared in two false press releases issued by High Velocity Alternative Energy Corporation in 2008. The complaint also alleges that Carter reviewed and approved the press releases before they were issued. High Velocity subsequently filed one of those press releases with the Commission as an attachment to a Form 8-K. Specifically, the complaint alleges:

  • The press releases and Form 8-K reported that High Velocity had received large contracts to supply two of its customers with automotive products. In fact, no such contracts existed.

  • High Velocity's stock price increased by over 100% and over 25%, respectively, after the fictitious contracts were announced.

The complaint further alleges that, as a result of his conduct, Carter violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks the entry of a permanent injunction against Carter and an order (1) requiring Carter to pay a civil penalty and (2) barring Carter from participating in any offering of penny stock or acting as an officer or director of a public company.

 
http://www.sec.gov/litigation/litreleases/2010/lr21671.htm

Last modified: 9/28/2010