SEC Charges Solar Company In Market Manipulation Case

SEC Sunrise Solar Corporation, Eddie D. Austin, Jr., and Carolyn Austin, Civil Action No. 5:12-cv-00918-OLG (W.D. Tx.).  On October 1, 2012, the SEC announced it had filed fraud charges against Sunrise Solar Corporation, its former CEO Eddie D. Austin, Jr., and his wife Carolyn Austin for their involvement in a market manipulation scheme.  Austin prepared and disseminated numerous false press releases that portrayed Sunrise as a thriving solar power business.  These press releases falsely represented that the company had received contracts and was in advanced negotiations to provide solar power to numerous international businesses that which would generate millions in revenue.  The Company also filed reports that did not disclose that the Austins had filed for bankruptcy.  Lastly, Carolyn Austin received and sold Sunrise stock in transactions that should have been registered with the Commission, receiving $174,471.

The SEC charged Sunrise with violating Sections 10(b) and 13(a) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, and 13a-11 thereunder.   The SEC charged Austin with violating, or aiding and abetting violations of, Sections 10(b), 13(a), and 16(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, 13a-14, 16a-2, and 16a-3 thereunder.  Carolyn Austin is charged with violating Sections 5(a) and 5(c) of the Securities Act.  Without admitting or denying the charges, both Austins have consented to entry of final judgments enjoining them from future securities laws violations.  Austin will be barred from acting as an officer or director of a public company and from participating in an offering of penny stock.  He will pay a $40,000 civil penalty. Carolyn Austin will pay disgorgement of $174,471, plus prejudgment interest of $22,982.

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