The Commission's Complaint alleged that Custable has orchestrated an ongoing scheme to violate the registration, antifraud and reporting violations of the federal securities laws. The scheme, as alleged in the Complaint, began in at least November 2001, has involved at least seven different penny stocks and has generated at least $4.3 million in ill-gotten gains. According to the Complaint, Custable fraudulently concealed his ownership interest in the seven penny stocks by having Suburban Capital, Wetzel, Widen and various other individuals engage in a host of securities transactions on his behalf. The Complaint further alleged that Custable, Wetzel and Suburban Capital have obtained stock through fraudulent Form S-8 registrations (normally intended to allow distribution of securities to employees and consultants) and through a scheme to counterfeit nearly half of the outstanding stock in Blagman Media International, Inc., a company whose stock is quoted on the OTC Electronic Bulletin Board. The Complaint alleged that Custable and the other defendants illegally dumped massive quantities of the improperly registered shares on the general public.
The Commission's Complaint also names as defendants four public companies whose stock is quoted on the OTC Electronic Bulletin Board (Bulletin Board Companies) and four officers of the Bulletin Board Companies. The other defendants named in the Commission's Complaint are Thermo Elastic Technologies, Inc., Wasatch Pharmaceutical, Inc., David Giles and Gary Heesch, who are two of Wasatch's officers, Pacel Corp., David Calkins, who is an officer of Pacel, Gateway Distributors, Ltd., and Richard Bailey, an officer of Gateway.
"haben illegal Unmengen von nicht sauber registrierten Aktien auf die Allgemeinheit abgeladen"....