SEC Charges Long Island Company and CEO with Stock Fraud
Litigation Release No. 24260 / September 6, 2018
Securities and Exchange Commission v. In Ovations Holdings, Inc. and Mark Goldberg, No. 18-cv-05026 (E.D.N.Y.) filed September 5, 2018
The Securities and Exchange Commission today filed charges against a microcap company and its CEO for issuing false and misleading press releases as part of a market manipulation scheme.
According to the SEC's complaint, In Ovations Holdings, Inc. (ticker: INOH) and its CEO, Mark Goldberg, issued false and misleading press releases as part of a scheme to fraudulently induce investors to buy Ovations stock so that one or more stock promoters could sell their Ovations shares. For example, as alleged in the complaint, on June 10, 2014, Ovations claimed that it "obtained exclusive rights to market" a "sophisticated sputum cytology technology for early and pre stage detection of lung cancer from . . . an officer and director of INOH." In fact, according to the complaint Goldberg knew this release was false and misleading because Ovations never provided any funding to the individual under its licensing agreement and that individual never served as an officer or director of Ovations.
The United States Attorney's Office for the Eastern District of New York announced criminal charges against Goldberg, who was a registered representative associated with ten broker-dealers between 1992 and 2003.
The SEC's complaint, filed in federal district court in Brooklyn, charges Ovations and Goldberg with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5(b) thereunder. The SEC is seeking a judgment ordering permanent injunctive relief and civil monetary penalties against Ovations and Goldberg, and also disgorgement of ill-gotten gains plus prejudgment interest, an officer and director bar, and a penny stock bar against Goldberg.
The SEC appreciates the assistance of the United States Attorney's Office for the Eastern District of New York and the FBI.