December 20, 2016: Yesterday, the SEC announced that it has charged Edward F. Panos, 46, of Park City, Utah, with running several penny stock scams, including E-Waste Systems, Inc (EWSI).
According to the SEC's complaint, filed in federal court in the District of Columbia, Panos, illegally concealed his control and ownership of shell companies that he created, took public, and sold for hundreds of thousands of dollars. He controlled those companies by installing figurehead CEOs and failed to disclose his large positions in these stocks. After selling off the shells, Panos, targeted them for pump and dump campaigns, during which he sold his remaining shares. The SEC's complaint also alleges that Panos conned college students to cooperate with his schemes. Panos' network of co-conspirators included attorneys, accountants, brokers, and promoters.
The SEC's seeks to recover the ill-gotten booty from Panos and his wife, Allison Panos, who was also named in the complaint. Panos consented to entry of a final judgment imposing permanent injunctions and agreed to pay disgorgement of $1,437,503, plus prejudgment interest of $345,000, and a civil penalty of $1,437,503. Panos also agreed to be barred from serving as an officer and director of a public company and a penny stock bar, and a prohibition on causing or deriving any compensation from the promotion, advertising, endorsing, or marketing of any issuer of any penny stock.
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