Nekekim Corp. and CEO Charged In Fraudulent Gold Mining Scheme
The SEC brought charges against California corporation Nekekim Corp. and its CEO Kenneth Carlton alleging both defrauded investors by claiming they had “unconventional” methods to extract gold from a “complex ore.” According to the SEC complaint, Carlton and Nekekim advertized that their “physicist” – who had no scientific background – had developed a proprietary technique to extract gold. Using test results from discredited labs and withholding negative results from reputable labs, Nekekim and Carlton allegedly misrepresented that their mines contained significant gold deposits. Hundreds invested in the scheme, which ultimately failed to produce mining revenue.
Read the complaint here.
Online Medical Registries Settles Fraud Charges
The SEC obtained a settlement in the case of Online Medical Registries (OMR) and its director David Stern in connection with false and misleading statements to investors. In 2010 the SEC alleged that Stern and OMR made numerous false representations to investors, ranging from OMR’s business ventures to Stern’s personal background (omitting his disbarment from the practice of law, for example). Stern settled the claims for over $225,000 and OMR settled for over $221,000, in addition to injunctions from further violations of the securities laws.