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June 3, 2012

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Henderson man accused of stock fraud that netted $930,000

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Friday, Sept. 11, 2009 | 5:04 p.m.

A Henderson man, Daryl O. Anderson, has been charged in civil action with a stock scalping scheme that generated more than $930,000 in illegal profits.

The Securities and Exchange Commission on Thursday filed the action. Scalping is an illegal practice that involves recommending that others buy a security, while secretly selling the same security, against the recommendation.

The commission's complaint alleges that between June 2007 and January 2008, Anderson, who is no longer associated with a registered broker-dealer, recommended Pink Sheets-quoted Cloudtech stock to his former brokerage customers, friends and relatives.

Anderson, 41, pitched Cloudtech as an up-and-coming company, where investors could double or triple their money quickly.

Anderson's investors trusted him and followed his advice, purchasing more than 1 million Cloudtech shares at a cost in excess of $3 million, the complaint said.

Those purchases accounted for 33 percent of the total trading volume in the stock, triggering a 358 percent increase in the stock price -- from 95 cents a share to a high of $4.25 per share.

The complaint also alleges that while Anderson recommended Cloudtech, he was secretly selling his personal Cloudtech shares, gaining $930,852 in illicit profits from the scheme.

Anderson has agreed to a permanent injunction against future violations, without admitting or denying the commission's allegations. He also agreed to pay back his ill-gotten gains, pre-judgment interest and a civil penalty in an amount to be settled by a court.

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