SEC Charges 3 for Their Roles in Manipulating Market for Sunrise Solar Corporation Stock
The Securities and Exchange Commission has charged Texas-based Sunrise Solar Corporation, its former CEO Eddie D. Austin, Jr. (Austin), and his wife Carolyn Austin for their involvement in a fraudulent market manipulation scheme.
The SEC’s Complaint alleges that between July 25, 2008 and May 26, 2009, Austin drafted, reviewed, and approved numerous false and misleading press releases that portrayed Sunrise as a thriving business operating in the solar power industry.
Among other things, these press releases represented that the company had received contracts and was in advanced negotiations to provide solar power to numerous international businesses that, if completed, would generate millions in revenue. The Complaint alleges that these representations were false.
In addition, the Complaint alleges that Sunrise filed, and Austin certified, two annual reports that failed to disclose Austin’s recent bankruptcy filing. Finally, the Complaint alleges that Carolyn Austin received and sold 300,000 shares of Sunrise stock in transactions that should have been registered with the Commission, receiving $174,471 in improper proceeds.
Austin is barred from acting as an officer or director of a public company and from participating in an offering of penny stock, and must pay a $40,000 civil penalty. Carolyn Austin must pay disgorgement of $174,471, plus prejudgment interest of $22,982. The settlements are subject to the Court’s approval.