SEC Lashes Out At Wolves Of Wall Street- Suspends 225 Companies

ilene's picture

SEC Lashes Out At Wolves Of Wall Street- Suspends 225 Companies

Courtesy of Joao Peixe of

The US Securities and Exchange Commission (SEC) has suspended 255 shell companies from trading until 14 February to prevent “pump and dump” fraud, and stocks will not be relisted if companies fail to prove they are operational.

The suspension took hold at the start of trading on 3 February and will end at 11:50 p.m. on Feb. 14. Suspended stocks can't be relisted unless the company can prove it is still operational, a requirement that the SEC said was "extremely rare."

The SEC suspension covers shell companies in 26 US states and two unnamed foreign countries, with the US regulator describing the targets as “ripe for abuse”.

These “pump and dump schemes” being targeted by the SEC generally occur when violators talk up a thinly traded microcap stock through false and misleading statements about the company to the market. The violators buy up the company’s shares cheaply and the pump up the stock price by creating the appearance of market activity and then dump the stock for a massive profit.

This activity was made famous through the 2014 Hollywood movie, The Wolf of Wall Street, which is based on the true story of former US stockbroker Jordan Ross Belfort, who served 22 months in prison for causing investors to lose $200 million through a pump and dump scheme.

The SEC moved to suspend 61 other shell companies in June last year, along with 379 shell companies in 2012. This is part of the SEC’s ongoing initiative dubbed “Operation Shell-Expel,” which was launched in 2012.

The suspension will end at 11:50 p.m. on 14 February, and according to the SEC, the “trading suspension essentially renders the shells worthless and useless to scam artists.”

Because these shells all too often are used by those looking to manipulate stock prices, we will continue to protect unwary investors by suspending trading in shells,” Andrew J. Ceresney, director of the SEC’s enforcement division, said in a statement.

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RaceToTheBottom's picture

Guess the small shell company business model will need to be altered a little to accomidate bribes for the SEC, just like the big boys

kurt's picture

Ouch! That wet noodle really stings.

pupdog1's picture

"Andrew J. Ceresney, director of the SEC’s enforcement division, said in a statement"


A buffoonish title like this is like saying you're the Commissioner of Women's Rights for the Saudi royal family.


Pee Wee's picture


These guys have been the textbook definition of shameless-incompetence since Chris Cox led the charge for fraud Inc.

No one is holding any breath whatsoever in the confidence in this agency.  They need to evaporate into nothingness, just like their mandate and function.

starman's picture

22 monhts in prison ? fuck yeah Ill do that for a cool million!

grekko's picture

That wasn't a cool million, it was a cool $22 million.  Well worth the 22 months.

Son of Loki's picture

The SEC? What's that?

DeadFred's picture

A subsector of the porn industry if I recall correctly. Perhaps it's a shell company for their pump and dump schemes?

rsnoble's picture

Only legit criminals like JPM are allowed in the arena.

dexter_morgan's picture

thats the law of the land here in Dumbfuckistan

Papasmurf's picture

Shut them down for two weeks, that'll show them.   /s

Put some fuckers in jail, or close up the agency.

logicalman's picture

SEC puts on a show for Joe Public.

Business as usual.

Pee Wee's picture

Joe pubic is nowhere near this "market."

The only participation comes from the money stolen in plain sight over decades - automatic deduction into the IRA's.

monad's picture

Those are the companies who wouldn't play ball. Probably the wrong race/religion too.

zipit's picture

Plenty of pump and dump at Goldman Sachs and the rest of the real Muppet slayers.

The Fonz...before shark jump's picture

A litany of small ball from the SEC...just to pad their stats....

The combined 255 pink sheet shells couldn't do nearly the same amount of damage to investor confidence as one Jon Corzine and MF Global can...

Or that one HFT machine can do....

Conax's picture

Whoops, that movie disturbed some blissfully sleepwalking muppets, they had to do something!


kaiserhoff's picture

Did Herbalife make the list?

Lumberjack's picture

Mafia Ties to Wind Fraud in Italy Investigated


Italian finance police have arrested two prominent businessmen — including one with ties to a former investor in the Cape Wind project in Nantucket — in the wind energy sector on charges of fraud. Arrested were Oreste Vigorito, head of the IVPC energy company and president of Italy’s National Association of Wind Energy, and Vito Nicastri, a Sicilian business associate, according to the Financial Times…




From our research (we are not affiliated with the link given):


please note:


The last two entries were Enron owned.  EcoElectica WAS CREATED EXACTLY WHEN IVPC WAS CREATED to sell electricity generated by wind in Italy for profit.  


Enron owned or operated 38 electric power plants worldwide:



Teesside (United Kingdom)—at the time of commission in 1992, at 1750 MW, was the largest Natural Gas Co-Gen plant in the world. Its on-time and under-budget completion put Enron Power on the map as an international developer, owner and operator.

Bahia Las Minas (Panama)—largest thermal power plant in Central America, 355 MW.

Puerto Quetzal Power Project (Guatemala)—110 MW.

PQP LLC (Guatemala)—holding company for 124 MW Power Barge named "Esperanza".

Empresa Energetica Corinto (Nicaragua)—holding company for "Margarita II" 70.5 MW power barge, Enron had 35% share.

EcoElectrica (Puerto Rico, USA)—507 MW natural gas cogeneration plant, with adjacent LNG import terminal- supplied 20% of island's electricity.

Puerto Plata Power Project (Dominican Republic)—185 MW power barge named "Puerto Plata".

Modesto Maranzana Power Plant (Argentina)—70 MW.

Cuiaba Integrated Project (Brazil)—480 MW combined cycle power plant.

Nowa Sarzyna Power Plant (Poland)—116 MW, first privately developed post-Communist electricity project in Poland.

Sarlux Power Project (Italy)—551 MW combined cycle power plant, converted residue from Italy's largest oil refinery into synthetic gas for fuel.

Trakya Power Project (Turkey)—478 MW.

Lumberjack's picture

There are at least 1000 shell companies we have found... still counting.

Lumberjack's picture

Here is a a small sample: 




UPC Asia Wind Partners, LLC
UPC Capital Partners (Holding) Cooperative, U.A.
UPC Construction Management, LLC
UPC Europe Wind Partners, LLC
UPC Hawaii Wind Construction, LLC
UPC Hawaii Wind O&M, LLC
UPC Helas Wind, EPE
UPC Maine Wind Construction, LLC
UPC Maine Wind O&M, LLC
UPC Management, LLC
UPC Mars Hill Wind Partners, LLC
UPC New York Wind, LLC
UPC O&M Management, LLC
UPC Oregon Wind, LLC
UPC Polish Wind Partners Spoika, Z.o.o.
UPC Renewables Partners (Holding) Cooperative, U.A.
UPC Solar, LLC
UPC Solar Management, LLC
UPC Solar Montebello/Orange, LLC
UPC Tunisia Wind Partners, LLC
UPC Utah Wind, LLC
UPC Vermont Wind, LLC
UPC Wind Gestione, S.r.l.
UPC Wind Partners, LLC
UPC Wind Partners II, LLC
UPC Wind Prospects, LLC
UPC Wind Uno, S.r.l.
UPC XET CA Management, LLC

logicalman's picture

If a corporation can have that many shells, why can't I have that many aliases?

Just wondering.

DeadFred's picture

On Zerohedge it's allowed to have multiple personalities share one alias but NOT more than one alias per personality. It's fight club so live with it.

Stuck on Zero's picture

Corporations have more rights than individuals - Supremes.


Lumberjack's picture


On Sept. 11, 2009, Democrat congressman Eric Massa of the 29th Congressional District of New York — yes, this district actually exists — wrote President Obama a letter regarding the Obama administration's $74.6 million grant to Canadaigua Power Partners, LLC, and Canandaigua Power Partners II, LLC, in Cohocton, N.Y. These companies, according to Massa, "act as shell companies that deceptively operate on behalf of First Wind, which is currently under investigation by New York State Attorney General Cuomo for corruption charges in Cohocton and across the Northeast."

In fact, wrote Massa, "Constituents in our region see these projects as criminal actions … the award of $74.6 million to corrupt companies that have changed names time and again forming new LLCs and new Inc.s but maintaining their business model of lie, cheat and corrupt at the expense of taxpayers has stirred great unrest." Remember, this is a Democratic congressman.