Search This Blog


This is a photo of the National Register of Historic Places listing with reference number 7000063

Wednesday, August 31, 2011

SEC ANNOUNCES FINAL JUDGEMENTS AGAINST ALLEGED FRAUDULENT STOCK OFFERING

"The Securities and Exchange Commission announced that on August 29, 2011, the United States District Court for the Southern District of Florida entered final judgments of permanent injunction against Pharma Holdings, Inc. ("Pharma Holdings"), Edward Klapp IV ("Klapp IV") and Edward Klapp, Jr. ("Klapp Jr."). The judgment against Klapp IV also imposed a disgorgement of $1,180,682.80, representing profits gained as a result of the conduct alleged in the complaint, together with prejudgment interest thereon in the amount of $65,407.39; and a civil penalty in the amount of $130,000. The judgment against Klapp Jr. also imposed a disgorgement of $504,696.86, representing profits gained as a result of the conduct alleged in the complaint, together with prejudgment interest thereon in the amount of $27,959.17; and a civil penalty in the amount of $130,000. In addition, both Klapp IV and Klapp Jr. are prohibited from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Securities and Exchange Act, 15 U.S.C. § 78, or that is required to file reports pursuant to Section 15(d) of the Exchange Act , 15 U.S.C. § 78o(d). The SEC's complaint alleged that from 2005 through September 2009, Pharma Holdings, purportedly in the pharmaceutical supply business, and the Klapps raised approximately $5 million from at least 80 European investors, primarily residing in the United Kingdom, through the fraudulent offer and sale of Pharma Holdings stock. In connection with its stock offerings, Pharma Holdings issued false press releases and made false postings on its website overstating Pharma Holdings' sales revenues and net profits, and touting non-existent business agreements with multinational corporations, including a purported IPO and/or acquisition by a large corporation or mutual fund. Further, Pharma Holdings and the Klapps failed to disclose that Edward Klapp IV had been criminally convicted of a felony involving fraud."

4 comments:

  1. I hope they rot in jail scum bastards,

    ReplyDelete
  2. May there families and colleges in this scam all die horrible deaths

    ReplyDelete
  3. I curse you Klapp! May your life be painful and full of misery like mine is now!

    ReplyDelete
  4. Why are they not in jail? Oh, I expect they paid their political dues.

    ReplyDelete