Today the Securities and Exchange Commission named Mission Viejo resident Jacob Canceli, 50, as one of eight defendants in a complaint for penny stock manipulation. Canceli is a penny stock promoter.
The ring of defendants allegedly reaped more than $6.2 million in illegal profits from the scheme in 2006-2007. The SEC says the strategy, labeled “pump-and-dump,” used various methods to create false impressions of demand for stock in specific companies. After artificially inflating the price, the defendants supposedly dumped shares they held on behalf of the issuing companies. Canceli allegedly held 312 million of those shares in his account.
In addition to the SEC complaint, the Delaware District attorney filed felony criminal charges against six of the men, including Canceli.
