SEC Charges First Resource Group with Stock Fraud
The Securities and Exchange Commission (SEC) recently charged Fort Lauderdale-based First Resource Group LLC and its principal David H. Stern with conducting a fraudulent boiler room scheme. The company allegedly hyped stock in TrinityCare Senior Living Inc. and Cytta Corporation, both thinly-traded penny stock companies, while simultaneously selling the same stock themselves for illegal profits.
According to an SEC news release:
“The SEC alleges that First Resource Group LLC and its principal David H. Stern employed telemarketers who fraudulently solicited brokers to purchase stock in TrinityCare Senior Living Inc. and Cytta Corporation. While recommending the securities in these two microcap companies, Stern sold First Resource’s shares of TrinityCare and Cytta stock unbeknownst to investors who were purchasing them – a practice known as scalping. As Stern was selling the stocks, he also purchased small amounts in order to create the false appearance of legitimate trading activity and induce investors to purchase shares in both companies.”
Read the full SEC charges against First Resource Group LLC and its principal David H. Stern. Read the court complaint from the U.S. District Court in the Southern District of Florida.
If you bought stock from First Resource Group LLC of Fort Lauderdale, FL or David H. Stern, contact Fort Lauderdale securities attorney Howard Kahn to discuss your legal options.
