Penny Stock Fraud Info
Tuesday, July 10, 2007
Darrel Uselton and Jack Uselton sued for organized crime - stock scams
A reader submitted a couple links about the Useltons, thank you! Notably, I’m still waiting for Darrel Uselton to sue me.
July 10, 2007, 8:15AM
Katy man charged in alleged online stock scamBy STEVE McVICKER
Copyright 2007 Houston ChronicleA Katy man faces organized crime charges in connection with an alleged scheme to sell worthless stocks over the Internet, according to the Texas Attorney General’s Office.
Investigators accuse Darrel Uselton, 40, of reaping “millions in illegal profits” by promoting shares in at least 13 worthless stock companies, then selling those stocks that had been artificially increased in value.
A statement from the attorney general’s office also accuses Uselton of orchestrating a series of spam e-mail campaigns to lure potential investors. The messages included “baseless price projections and other unfounded claims,” according to the statement.
Uselton is being held on $8 million bail at the Harris County Jail.
Uselton is also under investigation by the U.S. Securities and Exchange Commission and the Harris County District Attorney’s Office, according to the statement.
“This latest step in the Commission’s anti-spam initiative is intended to protect investors from fraud artists who would treat the investing public as their personal ATM machines,” SEC Chairman Christopher Cox said in the release.
Calls to Uselton’s home were not returned.
A second suspect is also being sought by authorities
The 12/29/06 Gulf Ethanol Corporation (Pink Sheets:GFET) press release announcing Uselton’s departure.
And here is the SEC complaint with the charges against JACK Uselton. Stock fraud seems to be the family business:
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