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U.S. Securities and Exchange Commission


Litigation Release No. 22940 / March 12, 2014

Securities and Exchange Commission v. Alternative Green Technologies, Inc., et al., Civil Action No. Civil Action No. 11-cv-09056-SAS (S.D.N.Y.)

SEC Obtains Settlements in Penny Stock "Shell Packaging" Case

The Securities and Exchange Commission has announced nearly $300,000 in settlements against a Virginia-based "shell packaging" company and its CEO who were charged with facilitating a penny stock scheme as well as a Bronx, N.Y.-based stock promoter who received proceeds from the fraud.

In a final judgment ordered January 15, 2014 by the Honorable Shira A. Scheindlin of the U.S. District Court for the Southern District of New York, Belmont Partners, LLC and Joseph Meuse agreed to pay $224,500. Meuse additionally has agreed to be barred from the penny stock business or from serving as an officer or director of a public company for at least five years. In a separate judgment, Thomas Russo, who was named as a relief defendant for the purposes of recovering ill-gotten gains from the scheme in his possession, agreed to pay $70,075.

Belmont Partners and Meuse agreed to be permanently enjoined from violating Section 5 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. They neither admitted nor denied the SEC's allegations.

See Also: SEC Complaint



Modified: 03/13/2014