The Securities and Exchange Commission has filed charges against microcap company Natural Blue Resources Inc. and four persons for purportedly hiding from investors that two of them had previously broken the law. The regulator has suspended trading in Natural Blue stock.
Natural Blue’s mission was to acquire, establish, or invest in companies that are environmentally friendly. However, investors weren’t told that Joseph Corazzi and James E. Cohen were running the operations.
Cohen had previously served time for financial fraud and Corazzi was charged with federal securities law violations. He is permanently barred from acting as a director or officer of a public company.
The two men referred to themselves as outside consultants when really they were in charge. This allowed Cohen and Corazzi to serve as de facto officers of the company and profit from it without having o disclose their past violations.
The SEC is charging Cohen, Corazzi, and Natural Blue with numerous violations, including those involving certain sections of the Securities Act of 193,3 the Securities Exchange Act of 1934, and Rules 10b-5(a) and (c).
Also charged are ex-Natural Blue CEOs Erik Perry and Toney Anaya. The regulator believes that when both were running the company, they still let Corazzi and Cohen make the management decisions, which led to no revenue made.
Now, Anaya, who is cooperating with the SEC, has agreed to the cease-and-desist order’s entry without denying or admitting to the charges. He also has to serve a five-year bar from taking part in any penny stock offering.
Perry also settled. He is permanently barred from serving as director or officer of a public company or from taking part in any penny stock offerings. Perry must pay a $150,000 penalty.
Our securities fraud lawyers are here to help investors get back their losses. We have helped thousands of clients recoup their money over the years. We represent individual investors and institutional clients in arbitration and litigation. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.
SEC Order Against Anaya (PDF)
SEC Order Against Perry (PDF)
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