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Statement on Jury Verdict in Florida Federal Court Following Trial Against Orchestrator of Pump-and-Dump Scheme

Andrew Ceresney
Director, SEC Division of Enforcement

Aug. 8, 2014

“Edward Hayter lied to investors in a microcap pump-and-dump scheme in which he profited handsomely. We are pleased that a federal jury has found him liable for violating the federal securities laws. This is yet another victory in the Commission’s multi-pronged approach to combating microcap fraud.”

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More Information:

  • SEC’s complaint in the case filed in 2010.
  • SEC alleged that Edward W. Hayter of Brooklyn, N.Y. orchestrated a pump-and-dump scheme involving the stock of BIH Corporation.
  • Hayter allegedly pumped up the price of BIH stock by disseminating false and misleading press releases and placing false information on BIH's website.
  • The four-day trial concluded today in U.S. District Court for the Middle District of Florida, Fort Myers Division.
  • Jury delivered its verdict in the SEC’s favor on all counts.

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