MANHATTAN (CN) - A Toronto man gulled investors for $3.2 million by spinning off 59 subsidiaries from his penny stock-issuing company, Blackout Media, without registering them and without a real purpose other than to make it appear that shares were being traded, the SEC says in Federal Court. It sued Sandy Winick, 51, and Blackout, which formerly was known as First Canadian American Holding Corp.
None of the spun-off shell companies had any assets or any real business, the SEC says, and Winick did not make required public disclosures about them.
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