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Renewable Energy and Power Inc. Securities Fraud Investigation

Renewable Energy and Power Inc. (RBNW) Securities Fraud Investigation, featured by top securities fraud attorneys, The White Law Group

SEC files charges in $3.1 Million alleged Boiler–Room Scheme, Central Islip, New York

According to a press release on Monday, the Securities and Exchange Commission announced new charges in connection with an alleged boiler room scheme purportedly involving the manipulation of millions of shares of Renewable Energy and Power Inc. (RBNW), purportedly generating approximately $3.1 million in illegal profits.

The SEC alleges an individual orchestrated the fraudulent boiler-room scheme by acquiring large blocks of RBNW shares through convertible notes purchased from RBNW by an entity that he allegedly controlled.

The individual purportedly paid a New York boiler room to promote RBNW stock to seniors and unsophisticated retail investors, allegedly fraudulently “pumping” the market price and trading volume of RBNW, as alleged, from approximately March to July 2017.

According to the SEC’s complaint, this individual allegedly engaged in manipulative trading, including by coordinating trading on the opposite side of the boiler room victims through encrypted messaging, which further artificially raised RBNW’s market price.

According to the SEC’s complaint, the individual purportedly sold more than eight million shares of RBNW, generating millions in illicit profits. He allegedly hid the source of his payments to the boiler room by making payments to a middle man through fake invoices.

The SEC’s complaint charges this individual with market manipulation and fraud. The SEC is seeking a permanent injunction, return of allegedly ill-gotten gains with interest, civil penalties, and a penny-stock bar.

Two related actions were involved previously in which the same affiliated boiler rooms were used to carry out the alleged schemes. In July 2017, the SEC charged two boiler rooms and 13 individuals with “bilking victims out of more than $10 million in penny stock scams”, and in November 2018, the SEC charged one of the boiler rooms and four individuals with a separate manipulation that reportedly generated over $3.3 million in illegal profits. The U.S. Attorney’s Office for the Eastern District of New York filed parallel criminal charges in these matters and in a parallel action filed today.

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This information is publicly available on the SEC’s website and provided to you by The White Law Group. If you are concerned about investments you made with Renewable Energy and Power Inc. the securities attorneys at The White Law Group may be able to help.

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Tags: , , , , , Last modified: September 27, 2019