DENVER (CN) - The Securities and Exchange Commission has accused the Regency Group and its principal owners of defrauding investors of millions of dollars through "pump-and-dump" schemes with two penny stocks, in Federal Court. The defendants hyped the stock of biotechnology startup Xpention and surveillance startup HS3 by merging them with shell companies, which "created the appearance that Xpention and HS3 stocks qualified to be traded publicly," the SEC claims.
The defendants allegedly touted the stocks as outstanding buys, and then sold their shares for a profit after artificially inflating the stock's value.
Subscribe to our free newsletters
Our weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.
Additional Reads
-
-
Texans head to the polls for high-stakes US Senate primary February 17, 2026