SEC v. Anthony K. Welch, Case No. 1:12-cv-3034 (N.D. Ga.). On August 31, 2012, the SEC charged former investment adviser Anthony Welch with fraud. Welch issued a press releases and made other public statements that had false and misleading information concerning technologies acquired by and revenues generated by eHydrogen and ChromoCure. The period of the false and misleading press releases coincided with suspicious price and trading volume increases in the common stock of both companies. Often, the statements were intentionally false and misleading and were distributed for no purpose other than to generate trading activity and artificially inflate the price and trading volume of eHydrogen and ChromoCure.
The Complaint charges Welch with violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Welch also has liability as a control person, pursuant to Section 20(a) of the Exchange Act for violations by eHydrogen and ChromoCure of Section 10(b) and Rule 10b-5. Welch is alternatively charged with aiding-and-abetting the antifraud violations of eHydrogen and ChromoCure. The SEC seeks a permanent injunction against Welch for fraud, an accounting, disgorgement plus prejudgment interest, civil penalties, a penny stock bar and an officer and director bar.