An Indian-origin former CEO of a penny stock company, charg-ed with making false claims and engaging in manipulative trading, has been ordered to pay a hefty fine of $294,000.
An Indian-origin former CEO of a penny stock company, charg-ed with making false claims and engaging in manipulative trading, has been ordered to pay a hefty fine of $294,000.
Adesh Kumar Tyagi was the former CEO, sole director, and majority shareholder of Systems America, later renamed Cloud-eeva.
The Securities and Exchange Commission (SEC) obtained a final judgment against Tyagi, who had been charged with making false claims in press releases and engaging in manipulative trading in company stock.
The final judgment, entered by consent on August 17 in the US District Court for the Northern District of California, permanently enjoins Tyagi from violating federal securities regulations and imposes a conduct based injunction.
It also orders Tyagi to pay about $294,000 in disgorgement and interest.
The SEC's complaint had alleged that Tyagi falsely claimed in press releases he issued between July 2010 and September 2011 that the company had hundreds of customers and supported customer operations in nearly 20 countries when, in fact, the company had only two main clients in 2010 and did not support operations in any foreign countries in 2010 and 2011.
