U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23782 / March 20, 2017
Securities and Exchange Commission v. Jerry Miller, Civil Action No. 17-cv-20933-DPG (S.D. Fla. filed Mar. 13, 2017)
SEC Charges Microcap Consultant with Fraud
On March 13, 2017, the Securities and Exchange Commission charged Jerry Miller, the principal of a Florida-based consulting firm to several microcap issuers, with fraud for falsely claiming that Petrotech Oil and Gas, Inc., one of its microcap issuer clients, had obtained a marijuana license in connection with its purported marijuana business.
The SEC's complaint, filed in federal court in Miami, Florida, alleges that on February 26, 2014, Petrotech falsely announced in a press release that it had secured a medical and recreational marijuana license from Colorado in conjunction with Petrotech's newly-founded marijuana business. The release also included marijuana production capacity projections based, in part, on Petrotech purportedly having secured the license. In reality, as alleged in the SEC's complaint, Petrotech had not received a license to conduct a marijuana business in Colorado. Miller allegedly wrote the press release and was responsible for publishing it.
The SEC's complaint charges Miller with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Section 20(b) of the Exchange Act, and seeks permanent injunctions, disgorgement of ill-gotten gains with prejudgment interest, a penalty, an officer and director bar, and a penny stock bar against Miller.
The SEC's investigation, which is continuing, has been conducted by Cecilia M. Danger and supervised by Jessica M. Weissman of the Miami Regional Office. The SEC's litigation will be led by Wilfredo Fernandez.