U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20892 / February 10, 2009
Securities and Exchange Commission v. George David Gordon, Joshua Wayne Lankford, and Dean Joseph Sheptycki, Civil Action No. 09 CV 061 CVE TLW (N.D. Okla. February 10, 2009)
SEC CHARGES TULSA LAWYER, FORMER DALLAS BROKER, and CANADIAN STOCK PROMOTER IN STOCK MANIPULATION SCHEME
Today, the Commission filed a civil enforcement action against Tulsa attorney George David Gordon; Dallas, Texas resident Joshua Lankford; and Canadian Dean Sheptycki for their roles in a scheme to defraud the public by manipulating the share prices of three penny stocks (National Storm Management Group, Inc. ("NLST"), Deep Rock Oil and Gas, Inc. ("DPRK"), and Global Beverages Solutions, Inc. ("GBVS) collectively referred to as "Target Stocks"). The Commission charged Gordon and Lankford with violating the antifraud and stock registration provisions of the United States securities laws and charged Sheptycki with aiding and abetting Gordon and Lankford's violations of the antifraud provisions.
According to the complaint, Defendants, acting in concert with other persons, obtained market domination in the Target Stocks; engaged in coordinated trading activity, including the use of illegal matched orders; and created and distributed to the public deceptive promotional materials, all of which generated the false appearance of investor interest in the Target Stocks thereby artificially inflating the prices of the shares. The complaint alleges that Defendants, acting in concert with other persons, sold shares of the same three Target Stocks they were recommending that the public buy. This scheme is commonly referred to as a "pump and dump" because the perpetrators artificially inflate or "pump" the price of a stock and then sell their own shares (the "dump"), at the artificially inflated "pumped" price. According to the complaint, Defendants' scheme to defraud was perpetrated from the spring of 2005 through December 2006 and derived illegal trading profits totaling in excess of $20 million.
The complaint charges Gordon and Lankford with violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder and Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 ("Securities Act"), and seeks a permanent injunction, disgorgement, prejudgment interest, a civil penalty, and a penny stock bar. The complaint charges Sheptycki with aiding and abetting Mark B. Lindberg, Gordon, and Lankford's violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Section 17(a) of the Securities Act, and seeks a permanent injunction, disgorgement, prejudgment interest, a civil penalty, and a penny stock bar.
On July 14, 2008, the Commission filed a related, settled enforcement action against Mark B. Lindberg. See Litigation Release No. 20645.
The Commission acknowledges the assistance of the U.S. Attorney's Office for the Northern District of Oklahoma; The U.S. Department of Justice, Criminal Division, Fraud Section; the Federal Bureau of Investigation; the Internal Revenue Service; the U.S. Postal Inspection Service; FINRA; the Hong Kong Securities and Futures Commission; the Securities Commission of the Bahamas; and the United Kingdom Financial Services Authority.
The Commission's investigation in this matter is ongoing.
The Commission has published guidance for investors concerning investments in microcap stocks. See: http://www.sec.gov/investor/pubs/microcapstock.htm.SEC Complaint