SEC Agrees to Settlement of Charges in Pump and Dump Case Against Stock Promoter and Affiliates

Defendants were charged with conducting a fraudulent scheme to pump and dump the stock of Nemdaco, a shell corporation that was once listed on the NASDAQ Bulletin Board. Defendant Schulman allegedly took undisclosed control of Nemdaco and appointed Bender and Larkin to be figurehead officers of the company. Defendants then caused Nemdaco to issue false and misleading press releases touting numerous phantom business opportunities, while Schulman fueled the scheme by selling millions of worthless Nemdaco shares through nominee brokerage accounts. Defendants were permanently enjoined and Schulman was barred from serving as officer or director of any public company. However, monetary sanctions were waived upon defendants’ demonstrated inability to pay.