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SEC Charges Four In Boiler Room Operation

By Mark H. Astarita, Esq.

We haven't heard the term "boiler room" in years, but the SEC dusted off the term this week when it announced that it had filed a complaint alleging that a group in Los Angeles were operating a boiler room that defrauded investors who they persuaded to buy purportedly profitable trading systems.The SEC alleges that representatives of Spyglass Equity Systems Inc. cold-called investors and made false and misleading statements to help raise more than $2.15 million from nearly 200 investors nationwide for two related investment companies ? Flatiron Capital Partners LLC (FCP) and Flatiron Systems LLC (FS). However, only a little more than half of that money was actually used for the advertised trading purposes, and much of the trading that did occur failed to use the purported trading systems...continue to full post

Full post as published by SECLaw.com on March 25, 2011 (boomark / email).