SEC Suit Charges Penny Stock Fraud: The...

SEC Suit Charges Penny Stock Fraud: The Securities and Exchange Commission filed a civil lawsuit in Los Angeles against Irvine penny stock dealer David Sterns and 13 associates for allegedly bilking $10 million from thousands of investors, including Olympic swimmer Mark Spitz. U.S. District Judge Edward Rafeedie granted a temporary restraining order against Sterns, including freezing all of his assets. The SEC is seeking at least $10 million in damages and wants to bar Sterns from ever serving as an officer or director of a publicly held firm. Sterns, 55, said he was unaware of the suit but would fight it. He acknowledged that he is under investigation by a federal grand jury on related criminal charges.