Thursday, February 21, 2008
Would you buy stock in a distributor of "self-cleaning toilet seats"? The SEC alleges that Clean Care Technologies, Inc. ("CCT"), its former president and principal owner, Edward Klein, and two salespeople, Al Nazon and Anil Varughese, orchestrated a fraudulent unregistered offering of CCT securities, through which they raised approximately $2.2 million from at least 26 unsuspecting investors. CCT purported to be the exclusive North American Distributor of a self-cleaning toilet seat (which, in fact, it wasn't).
The Commission's complaint, filed in the Southern District of New York, charges that the defendants violated securitles laws by conducting an unregistered offering of securities and making material misrepresentations and omissions to investors. The Commission's complaint seeks a final judgment assessing civil penalties, permanently enjoining defendants from further securities law violations and trading of penny stocks, and ordering the defendants to disgorge their ill-gotten gains. Securities and Exchange Commission v. Clean Care Technologies, Inc., et al., 08 CIV 01719 [HB] (S.D.N.Y.)