The SEC alleges that between November 2007 and May 2009 Roger D. Shearer, CEO of StratoComm Corp., and Craig Danzig, the company's former director of investor relations, duped clients into buying securities in the phony company, with Shearer using much of the money for his own purposes, according to an SEC complaint filed Oct. 4 in U.S. District Court for the Northern District of New York.
Shearer, of Latham, N.Y., and Danzig
, of Boca Raton, Fla., issued public statements falsely portraying StratoComm
as actively engaged in the manufacture and sale of telecommunications systems for use in underdeveloped countries, particularly Africa, according to the SEC
Prior to joining StratoComm in 2007, Danzig was a registered representative associated with with several broker-dealers.
In 1996, the State of Delaware sanctioned Danzig
in connection with unauthorized transactions in a customer's account.
The same year he
was barred from obtaining a license to sell securities in N.J.
securities license subsequently lapsed in 2000.
is seeking permanent injunctions, disgorgement of unlawful proceeds and prejudgment interest, and a financial penalty for all the defendants.
It is also seeking an order prohibiting Shearer from serving as an officer or director of a public company and prohibiting Shearer and Danzig
from participating in the offering of a penny stock.