Securities and Exchange Commission v. Edward Bronson, et al., Case No. 12-CV-6421 (S.D.N.Y.).  On August 22, the SEC charged Edward Bronson and his company, E-Lionheart Associates LLC, in a penny stock scheme.  Bronson and E-Lionheart employees would makes cold calls to penny stock companies quoted on the OTC Link to ask if they were looking for capital.  E-Lionheart bought stock at discount rates and then resold the shares.  Bronson and E-Lionheart claimed the sales were exempt from registration under a provision of Regulation D that exempts transactions that are in compliance with state law exemptions.  However, no state law exemptions were applicable to these transactions.  Bronson and his company made more than $10 million in profits from the unlawful sale of the shares.  Bronson and E-Lionheart are charged with violating Sections 5(a) and 5(c) of the Securities Act.  The SEC seeks injunctive relief, disgorgement, civil monetary penalties and penny stock bars.