THE Securities and Exchange Commission has brought down its axe upon two 'consultants'
and two former CEOs for concealment of the true identity of those managing a Microcap firm.
In SEC administrative proceedings, documents revealed Natural Blue Resources Inc. was set-up as a Microcap firm to attract investment for ground water purification in the US south-west.
The SEC said potential Microcap investors had not been told that one of those managing the business had previously been barred from managing a public company or that the other was a convicted felon.
The commission maintained that James E. Cohen and Joseph Corazzi – secretly controlled the operational and management decisions of Natural Blue while calling themselves outside “consultants.”
The SEC documents state Cohen, of Windermere, Fla., was previously incarcerated for financial fraud whilst Corazzi, of Albuquerque, N.M., was previously charged with violating federal securities laws and permanently barred from acting as an officer or director of a public company.
The SEC served cease-and-desist orders on both former CEO's of the Microcap - Toney Anaya and Erik Perry.
Anaya - a former New Mexico governor and attorney general - served as CEO from August 2009 to January 2011 whilst Perry served as replacement up until June 2011 when the SEC stepped in and pulled the plug on Natural Blue's investment vehicle.
Anaya will be barred from participating in any offering of a penny stock for at least five years with financial penalties to be determined later.
Perry, who now resides in Bulgaria, agreed to pay a $150,000 penalty and be permanently barred from serving as an officer or director of a public company and from participating in any offerings of penny stock.
Source: SEC Newsroom