Two Defendants Charged with Lying to the SEC Sentenced in Microcap Fraud Case
Litigation Release No. 24391 / February 5, 2019
Securities and Exchange Commission v. Edward Withrow, et al., No. 15-cv-13348 (D. Mass. filed Sept. 14, 2015)
United States v. Edward Withrow, No. 15-cr-10261 (D. Mass. filed Sept. 14, 2015)
United States v. Samuel Brown, No. 15:cr-10123 (D. Mass. filed May 20, 2015)
A stock promoter and a former chairman of a Massachusetts-based medical diagnostics company previously called Endeavor Power Corp were sentenced in a federal court in Boston, Massachusetts in a related criminal case brought by the Massachusetts U.S. Attorney's Office. The Securities and Exchange Commission previously charged all three defendants with a scheme to defraud potential investors in Endeavor's publicly traded stock.
On December 12, 2018, California resident Edward Withrow III was sentenced to five months of home detention, five years of probation, and a fine of $10,000 for making false statements to the SEC. Withrow previously pled guilty to making false statements in connection with his 2013 sworn investigative testimony to the SEC relating to questions about who owned approximately 40 million unrestricted shares of Endeavor's stock, and whether former chairman Withrow ever tried to determine who owned those shares.
On January 30, 2019, Idaho resident Samuel Brown was sentenced to five months in home detention, three years of probation, and ordered to pay restitution of $22,347. Brown was charged criminally in May 2015 and pled guilty in July 2015 to one count of conspiracy to commit securities and wire fraud and one count of making false statements in connection with his 2013 sworn investigative testimony to the SEC.
The SEC's litigation against Withrow, Brown, and another defendant is pending.