SEC Suspends Trading in Three Companies Promoted Through Spam and Internet Videos
FOR IMMEDIATE RELEASE
Graystone Park Enterprises Touted on YouTube Video:
(located 1:54 to 2:25)
(total running time: 3:40)
Younger America Touted on YouTube Video:
(located 1:15 to 1:30)
(total running time: 2:59)
Washington, D.C., March 20, 2008 — The Securities and Exchange Commission today continued its highly successful pursuit against stock market e-mail spam by suspending trading in the securities of three companies that havenít adequately disclosed information to investors and have been the subject of spam e-mail campaigns and promotional videos on the Internet site YouTube. The videos often repeat information in the companiesí press releases and are posted to coincide with traditional spam e-mail campaigns.
The Commission issued an Order finding that each of the companies subject to today's trading suspension — NeoTactix Corporation (NTCX), Graystone Park Enterprises, Inc. (GPKE), and Younger America, Inc. (YNGR) — has inadequately disclosed its assets, business operations, and current financial condition.
The SEC's Anti-Spam Initiative, launched in March 2007, has been credited with a significant reduction in financial spam, and spam-related complaints to the SEC's Online Complaint Center have decreased by more than two-thirds in the past year.
"The SEC's anti-spam efforts have been remarkably successful to date, but we will not be complacent in our pursuit of unscrupulous stock promoters," said Linda Chatman Thomsen, Director of the SECís Division of Enforcement. "The SEC will continue to take aggressive action against stock promoters and spammers, including those who are exploiting investors through YouTube."
Mark K. Schonfeld, Director of the SEC's New York Regional Office, said, "Today's trading suspensions represent the next step in the Commission's successful initiative against spam-driven stock promotion. Whether it's boiler rooms, blast faxes, e-mail spam, or Internet videos — as promoters have exploited new channels of communication, the SEC has been there to stop them."
Through its Anti-Spam Initiative, the SEC has suspended trading in the securities of 50 companies and has brought several enforcement actions against spammers, promoters, and insiders. These latest three suspensions are the result of a coordinated effort between the SEC's New York, Denver, and Washington D.C. offices. The SEC's Anti-Spam Initiative is now part of the microcap fraud working group recently formed within the Division of Enforcement.
NeoTactix Corporation is quoted on the OTC Bulletin Board and the Pink Sheets, and changed its name and symbol from EntreMetrix Corp. (ERMX) on Jan. 11, 2008. Graystone Park Enterprises and Younger America are quoted on the Pink Sheets. The trading suspensions will last for 10 business days, commencing today at 9:30 a.m., ET, and terminating at 11:59 p.m., ET, on April 3, 2008. The Commission has not suspended trading in all of the stocks described in the promotional videos.
The SEC's Online Complaint Center has reported a major drop in spam-related complaints since the SEC announced its Anti-Spam Initiative. Online spam-related complaints to the SEC dropped from more than 166,741 complaints in February 2007 to 53,785 complaints last month — a decline of nearly 68 percent.
The Online Complaint Center can be reached at firstname.lastname@example.org, as information from the public may alert the SEC to an unfair practice in the securities industry or the latest fraud. Any broker, dealer or other person with information relating to these trading suspensions can e-mail the SEC at email@example.com.
The SEC's Office of Investor Education and Advocacy has information for investors and members of the general public on topics directly related to this action by the SEC. Visit http://www.sec.gov/investor/antispaminitiative.htm for a compilation of helpful links.
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SEC Online Complaint Center Data:
For more information, contact:
Assistant Regional Director
SEC's New York Regional Office
John Reed Stark
Chief, SEC's Office of Internet Enforcement
Assistant Regional Director
SEC's Denver Regional Office
SEC's Division of Enforcement