Utah Company Suspected of Securities Fraud
The CEO of CyberKey Solutions has been accused of a cyber-scam. Jim Plant is accused of having sold unregistered stock. CyberKey is a publicly-traded company that the company said was worth millions, largely due to a contract between CyberKey and the Department of Homeland Security. Colin Fraser, an investor scammed by the stock plot, said that Plant "continued to claim that the contract was real. He continued to claim that he had the revenues. So everybody held on." Fraser lost about $11,000 in the scam; he has friends who have lost as much as $200,000.
In a video made for CyberKey shareholder, Plant said that "CyberKey Solutions has experienced incredible growth over the last year. We've received over $18-million dollars from these orders so far." However, the Securities and Exchange Commission actually has filed civil fraud charges against Plant and his company, saying Plant faked a $25-million dollar purchase order and made false public statements. Plant was arrested March 13 in St. George, Utah on charges of securities fraud.
Related Links:
Legal View: Securities
CEO of St. George's CyberKey accused of fraud
CyberKey CEO Accused of Fraud
SEC Charges Cyberkey and CEO James Plant for Promoting Stock Offering with Phony Homeland Security Deal
SEC Charges Cyberkey Solutions with Securities Fraud