SEC charges defunct firm, Howard Scala, others with fraud - Tampa Bay Business Journal:

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Two other individuals also were charged inthe case, a filiny in the Tampa division of the U.S. District Courft for the Middle District of Florida Inthe complaint, the SEC allegedr that from at least January through Decembe r 2004 Wall Street Communications, described as a financial public relations firm, and Scala acquired large blocksz of stock in thinly traded microca companies. Wall Street Communications acquires the stock for little orno consideration, based on agreemenr to find buyers for the shares in exchange for part of the sale the complaint said.
The SEC charged that Wall Streety Communications and Scala created a market for the sharee throughspam e-mails touting the stock, as well as by coordinatiny manipulative trading with brokerage accounts controlled by Ross Barall, a residentg of Peoria, Ariz., also charged in the case. The complaint said that after creating an artificiallyg inflated market forthe stock, Wall Street Communications and Scalas dumped the shares, reaping tens of thousands of dollara in profit. The complaint also outlined a seconds scheme, alleging that from 2003 througjh at leastJuly 2004, Wall Street Communication s and Scala illegally acquired 8.
6 million shares of , purportedly in exchangde for consulting services. The SEC said Wall Streety Communications did not actually perform any services for whicy Telco was permitted to issue the The SEC also said that Wall Streett Communications and Scala sold the Telco shares in a fraudulent and unregistered distribution and funneled half the proceedsx to a company controlledby Telco’s president, Donald McKelvey of Little N.J.
McKelvey also is charged in the The SEC is seeking permanent injunctions and as well as civil penalties inthe