INVESTMENT ADVISER BUSINESS AND OWNER ACCUSED OF TAKING CLIENTS FUNDS

FROM:  U.S. SECURITIES AND EXCHANGE COMMISSION
June 11, 2012
SEC Charges Atlanta Investment Advisor and its Owner for Misappropriating Client Funds
On Saturday, June 9, 2012, The Securities and Exchange Commission filed a civil action in the United States District Court for the Northern District of Georgia against Benjamin Daniel DeHaan and Lighthouse Financial Partners, LLC. Lighthouse, an investment advisor located in Atlanta and registered with the State of Georgia, has been owned and operated by DeHaan since 2007.

The Commission’s complaint alleges that from approximately January 2011 through early May 2012, DeHaan moved approximately $1.2 million in funds belonging to his clients from their accounts at a custodial broker-dealer into a bank account in Lighthouse’s name that he controlled, thus gaining custody and control of these client assets. DeHaan and Lighthouse told the clients that these funds would be used to open new accounts at another broker-dealer. Once in this account, at least some of these funds were moved to a personal account belong to DeHaan and to accounts used by Lighthouse for business expenses. At least $600,000 in client funds remains unaccounted for. DeHaan is also alleged to have provided false documents to the Commission’s staff and to an examiner for the State of Georgia.

Without admitting or denying the allegations in the Commission’s complaint, DeHaan and Lighthouse have offered to consent to interim relief in the form of an order providing for a preliminary injunction against violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940, allowing for expedited discovery, freezing their assets, preventing the destruction or concealment of documents and requiring an accounting. The Commission may seek additional relief, such as a permanent injunction, disgorgement of any ill-gotten gains with prejudgment interest and civil penalties, at a later time.
The Commission acknowledges the assistance and cooperation of the Securities Division of the Georgia Secretary of State’s Office in investigating this matter.

THE PENNY STOCK COMPANY ROUNDUP FOR ALLEGED FRAUD

FROM:  U.S. SECURITIES AND EXCHANG COMMISSION
Washington, D.C., June 4, 2012 — The Securities and Exchange Commission today charged several penny stock companies and their officers as well as three penny stock promoters involved in various stock schemes in which bribes and kickbacks were paid to hype microcap stocks and illegally generate stock sales.

These charges are the latest in a series of cases in which the SEC has worked closely with the U.S. Attorney's Office for the Southern District of Florida and the Federal Bureau of Investigation to uncover penny stock schemes. Prior charges were filed by the SEC against other penny stock violators in October 2010, December 2010, and June 2011.

According to the SEC's complaints filed in U.S. District Court for the Southern District of Florida, some of these latest schemes involved the payment of undisclosed kickbacks to a pension fund manager in exchange for the fund's purchase of restricted shares of stock in the various microcap companies. Other schemes involved an undisclosed bribe that was to be paid to a stockbroker who agreed to purchase a microcap company's stock in the open market for his customers' discretionary accounts.

"The company officers and promoters in many of these schemes disguised their kickbacks as payments to phony consulting companies that performed no actual work," said Eric I. Bustillo, Director of the SEC's Miami Regional Office. "These illegal activities were fully intended to artificially inflate the stock volume and prices of these penny stock companies to the detriment of investors."

The SEC's complaints allege the following penny stock companies and individuals perpetrated the various stock schemes:
Angel Acquisition Corp. (AGEL) based in Carson City, Nev., and Carlsbad, Calif. (now known as Biogeron Inc.)
President and CFO Harold Steven Bonenberger of Carlsbad.


Clean Coal Technologies Inc. (CCTC) based in New York City.
President and CEO Douglas D. Hague of Boca Raton, Fla.


Cotton & Western Mining Inc. (CWRN) based in Humble, Texas.
President and CEO Robert L. Cotton of Houston.


Delivery Technology Solutions Inc. (DTSL) based in Boca Raton.
CEO and Chairman Ryan F. Coblin of Boca Raton.


Optimized Transportation Management Inc. (OPTZ) based in San Antonio
CEO Kevin P. Brennan of Pittsburgh.
OPTZ stock promoter Marc S. Page of Tiburon, Calif.
OPTZ stock promoter Donald G. Huggins of St. Petersburg, Fla.


Sure Trace Security Corp. (SSTY) based in Philadelphia.
Chairman and former president Michael M. Cimino of Philadelphia.
President Joseph J. Repko of Hobe Sound, Fla.


US Farms Inc. (USFM) based in San Diego and Fallbrook, Calif.
President and CEO Yan K. Skwara of San Diego.


Wound Management Technologies Inc. (WNDM) based in Fort Worth, Texas, and Fort Lauderdale, Fla.
President, CEO, and Chairman Scott Haire of Fort Worth and Coral Springs, Fla.


The SEC additionally charged a stock promoter involved in pumping the stock of KCM Holdings Corp., a penny stock company charged in the SEC's series of penny stock enforcement actions in June 2011. The SEC alleges that Matthew A. Connor, who lives in Amherst, Va., participated in a fraudulent scheme to hype KCM Holding's stock.
The U.S. Attorney's Office today announced criminal charges against the same individuals facing SEC civil charges.

The SEC's complaints allege that these companies, officers, and stock promoters violated Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC is seeking financial penalties, disgorgement of ill-gotten gains plus prejudgment interest, and permanent injunctions against all the defendants. The SEC also seeks penny stock bars against each of the officers and promoters as well as officer-and-director bars against Bonenberger, Brennan, Cimino, Hague, Haire, and Skwara.

The SEC's investigation was conducted in the Miami Regional Office by senior counsels Trisha D. Sindler and Michelle I. Bougdanos under the supervision of Assistant Regional Director Chedly C. Dumornay. The SEC's litigation will be led by C. Ian Anderson, Edward D. McCutcheon, and James M. Carlson. The SEC acknowledges the assistance and cooperation of the U.S. Attorney's Office for the Southern District of Florida and the FBI's Miami Division in these investigations.