SEC Foils Penny Stock Executive’s Plan to Pump Stock and Exploit Investors

The Securities and Exchange Commission today barred the president of a penny stock company from ever again serving as a public company officer or director after he was caught making false and misleading statements about the company to investors in an effort to increase demand for the stock. The SEC confronted him quickly and the misstatements were removed from the Internet and social media before any dramatic spike in stock price typically seen in pump-and-dump schemes could occur. Following such spikes, fraudsters dump their shares and stop hyping the stock, the price typically falls, and investors lose their money. According to the SEC’s order, Robert Ritch of Spring Hill, Tennessee, began spreading false information on social media about his investment successes and the company’s prospects shortly after taking control of Manzo Pharmaceuticals (MNZO) in July 2017.