From today's Dallas Morning News:
SEC sues Plano firm's owner, alleging stock 'pump and dump' [The Dallas Morning News]
Jan. 22 -- The Securities and Exchange Commission sued a Plano man and his firm Thursday, accusing them of helping stock promoters "pump and dump" shares of small companies for profit.
The suit claims Robert Feeback of Plano and his Dallas -based company, Summit Advisory Group , helped three stock promoters advertise false information about three small companies so that investors would buy the shares and raise their stock prices.
After the prices rose, the stock promoters sold their interests in the companies -- My Vintage Baby , Alchemy and Beverage Concepts Inc. -- and made at least $20 million , the suit said.
Reached at home, Martha Feeback said her husband wasn't there. Further attempts to reach Feeback were unsuccessful Thursday; the phone number for Summit rings as busy.
The suit claims Summit helped stock promoters Ryan Reynolds , Jason Wynn and Carlton Fleming -- all named in separate SEC suits filed in recent years -- to mislead investors about the health of the companies.
A series of news releases touted the prospects of all three companies and helped the stock promoters profit from trading on the shares, according to the suit.
The suit alleges that My Vintage Baby made high-end children's clothes but never made any money; that Alchemy, a maker of DVDs, "had only $1.52 in its bank account"; and that Beverage Creations made no beverages, had no facilities and had lost thousands of dollars.
The suit seeks return of any ill-gotten profits from Summit and Feeback, who was managing partner of the company.
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