SEC Shuts Down Three Companies that Send Out Financial Spam

The Move is Part of the SEC's Anti-Spam Initiative to Reduce Stock Spam

The Securities and Exchange Commission has suspended the trading of three companies that are culprits of sending out spam emails that promise deals on high performing, little-known stocks. The companies in question have not been able to provide the SEC or the investing public with enough accurate information about themselves. The suspensions are part of the SEC's Anti-Spam Initiative that was announced earlier this year.

The Initiative has been credited with reducing the amount of spam that afflicts Internet users. The SEC issued a press release today that cites a private sector Internet security report that stated that Internet stock market spam has decreased by 30% since the SEC has acted to reduce spam, and the profitability of those emails that offer fraudulent stocks. The SEC also reports that since the March 2007 launch of the Initiative, spam-related calls to the SEC's Complaint Center has been reduced by half.

SEC Chairman Christopher Cox said in the press release that "the SEC is moving aggressively against stock market spam that has been clogging our e-mail inboxes for too long." The SEC has suspended trading in the securities for 39 companies since the Initiative launched, and has also pursued spam-related enforcement actions.

Mark Schonfeld, the Director of the SEC's New York Regional Office, said, "today's trading suspensions exemplify our firm commitment to protecting investors from stock fraud and spam e-mail." The trading suspensions issued today affect three companies: Alliance Transcription Services, Inc. (ATSS), Prime Petroleum Group, Inc. (PPGU) and T.W. Christian, Inc. (TWCI). These companies have up until August been known as Strategy X, Inc; Pinnacle Development, Inc.; and Xraymedia, Inc. respectively. On August 14, these companies changed their names and ticker symbols, in an attempt to appear to be new businesses. These businesses are under investigation because they have not adequately disclosed their financial information, such as assets, business operations or management.

The trading suspensions last for 10 days, starting today and ending October 17.