U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21193A / September 1, 2009
Securities and Exchange Commission v. Golden Apple Oil and Gas, Inc., et. al., Civil Action No. 09 CV 7580 (HB)(SDNY)
SEC CHARGES PENNY STOCK COMPANY, FORMER PRESIDENT, ATTORNEY, AND PROFITER IN PUMP-AND-DUMP SCHEME
The Securities and Exchange Commission filed a complaint yesterday in the Southern District of New York charging Golden Apple Oil and Gas, Inc. ("Golden Apple"), its former President Jay Budd, former company attorney John Briner, and Ethos Investments, Inc., with securities law violations in connection with a fraudulent scheme to inflate artificially the market for Golden Apple stock. Golden Apple was incorporated originally as CDI Developments, Inc. and subsequently underwent a series of name changes. On April 7, 2006, the Commission suspended trading in Golden Apple's securities.
The SEC's complaint alleges that:
The Complaint alleges that defendants Golden Apple, Budd, Briner and Ethos violated Sections 5(a) and 5(c) of the Securities Act of 1933, and that defendants Golden Apple, Budd and Briner violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10-b thereunder. The Commission is seeking permanent injunctions against all defendants, disgorgement with prejudgment interest, civil penalties, and verified accountings from Budd, Briner, and Ethos, and officer and director bars and penny stock bars against Budd and Briner.
The SEC acknowledges the Financial Industry Regulatory Authority (FINRA), the British Columbia Securities Commission, and the Ontario Securities Commission for their assistance in this matter.