The Securities & Exchange Commission (SEC) charged Houston- based penny stock company Chimera Energy (CHMR) , Andrew I. Farmer, Charles E. Grob, Jr. , Baldemar Rios and Carolyn Austin with securities fraud for their involvement in a pump and dump scheme that touted an end for the need to frack oil and gas wells.
According the press release, which can be accessed here, the SEC alleges that Farmer secretly obtained all the shares of Chimera in late 2011, then launched an aggressive marketing campaign hyping the stock to investors. During a two month period over 36 press releases were published touting the company’s licensing of a technology designed to extract shale oil without the need for hydraulic fracking.
Chimera did not actually possess the technology. While the stock was being pumped, Farmer dumped 6 million shares earning $4.5 million in illicit profits. The SEC suspended trading in Chimera Energy stock in 2012 to bring a halt to the dumping by Farmer and his cohorts.
If you lost money on an investment your broker recommended in Chimera you may be able to recover damages. Brokers and brokerage firms have a duty to perform due diligence on investments prior to making a recommendation to customers. Call to discuss your legal options.
Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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