U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19238 / May 25, 2005
SEC v. Aimsi Technologies, Inc., et al., 05 CV 4724 (LLS) (S.D.N.Y.)
SEC CHARGES AIMSI TECHNOLOGIES, INC., REGINALD HALL, AND STOCK PROMOTERS WITH SECURITIES FRAUD
The Commission announced today that it filed an emergency enforcement action on May 16, 2005 against Aimsi Technologies, Inc., its Chief Executive Officer, Reginald Hall, and a group of stock promoters: Harris Dempsey "Butch" Ballow, Everett Bassie, Winfred Fields and Bruce Pollock (the "Promoter Defendants").
The Complaint alleges that the defendants have engaged in a deliberate "pump and dump" scheme to defraud investors, in which the Promoter Defendants, with the active cooperation of Hall, acquired a substantial stake in the shares of Aimsi, orchestrated a fraudulent promotional campaign to drive up the price and trading volume of Aimsi's stock, and then sold their shares at a substantial profit to the investing public after their plan succeeded. The Complaint alleges that before the Commission suspended trading in Aimsi's stock on December 15, 2004, the defendants earned illicit trading profits of at least $3.1 million.
The Complaint charges violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5.
Upon the Commission's application, the United States District Court for the Southern District of New York yesterday entered a temporary restraining order freezing the defendants' assets. The litigation is pending.