U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21387 / January 21, 2010
Securities and Exchange Commission v. Robert Feeback, et al., Case No. 3:10-cv-104
SEC CHARGES TEXAS CONSULTING FIRM AND ITS MANAGING PARTNER IN PUMP AND DUMP SCHEME
On January 20, 2010, the United States Securities and Exchange Commission sued Summit Advisory Partners, LLC and its managing partner, Robert Feeback, for directing and providing essential services in a scheme to "pump and dump" the stock of various penny stock companies in Texas. According to the complaint, the actions of Feeback and Summit allowed three stock promoters - Ryan Reynolds, Jason Wynn and Carlton Fleming - to purchase millions of shares of stock for pennies per share, hype the companies through promotional mailers and other advertising, and illicitly sell their shares to the public for millions of dollars in profits. The Commission alleges that because the shares were not registered, public investors were deprived of full and fair disclosures necessary to make an informed decision to purchase the stock.
According to the complaint, Feeback and Summit served as necessary participants in the scheme by introducing the penny stock companies - My Vintage Baby, Inc., Alchemy Creative, Inc. and Beverage Creations, Inc. - to Reynolds, Wynn and Fleming, assisting the companies in obtaining necessary legal services and documents, and steering the public relations effort to promote the companies once public trading began.
The SEC alleges that by the above-mentioned conduct, Summit Advisory Partners, LLC and Feeback violated the registration provisions of the Securities laws, Sections 5(a) and (c) of the Securities Act of 1933. The SEC is seeking permanent injunctions, civil penalties, disgorgement of ill-gotten gains and penny stock bars. Ryan Reynolds is a defendant in three actions filed by the SEC: Securities and Exchange Commission v. Offill, et al. No. 3:07-cv-1643-D, SEC v. Reynolds, et al. No 3:08- cv-438, and SEC v. Reynolds, et al., No. 3:08-cv-01687-M, each in the U.S. District Court for the Northern District of Texas. Wynn and Fleming are defendants in SEC v. Reynolds, et al. No 3:08- cv-438.
See Also: SEC Complaint