David Aubel and Robert Raffa
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23511 / April 7, 2016
Securities and Exchange Commission v. David Aubel and Robert Raffa, Civil Action No. 16-CV-10670 (D. Mass. filed April 7, 2016)
SEC Charges Two Individuals Behind Scheme to Manipulate Company Stock
The Securities and Exchange Commission today announced fraud charges against two men behind a scheme to manipulate the stock of Green Energy Renewable Solutions, Inc., a company that purported to be in the business of developing waste processing and recycling facilities.
The SEC's complaint, filed in federal court in the District of Massachusetts, charges David Aubel, of Florida, and Robert Raffa, of New Hampshire, for their roles in the alleged scheme. In a parallel case, the U.S. Attorney's Office for the District of Massachusetts today filed charges against the two men.
According to the SEC's complaint:
- Aubel and Raffa concealed their ownership of a significant percentage of Green Energy's stock in violation of SEC rules, paid stock promoters in 2012 and 2013 to tout Green Energy as a legitimate company with growing operations, and engaged in manipulative trading.
- Aubel and Raffa paid a kickback to an individual they believed to be a stock broker in exchange for the broker's agreement to buy Green Energy shares from them.
- Green Energy's stock price and trading volume increased as a result of the manipulative trading and promotional campaign, and Aubel and Raffa profited, selling the Green Energy stock they controlled for more than $1.6 million.
The SEC's complaint charges Aubel and Raffa with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Section 17(a) of the Securities Act of 1933 ("Securities Act"); the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act; and the beneficial ownership disclosure provisions in Sections 13(d) and 16(a) of the Exchange Act and Rules 13d-1, 13d-2, and 16a-3 thereunder. The SEC seeks permanent injunctions, penalties, and the return of allegedly ill-gotten gains plus interest.
The SEC's investigation was conducted by Eric A. Forni and Mark Albers of the SEC's Boston Regional Office and supervised by Michele T. Perillo. The SEC's litigation will be led by Mr. Forni and Martin F. Healey. SEC attorney Andrew J. Palid has been appointed a Special Assistant U.S. Attorney in the parallel criminal case. The SEC appreciates the assistance of the U.S. Attorney's Office for the District of Massachusetts, the Federal Bureau of Investigation and the Financial Industry Regulatory Authority.
