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SEC Wins Summary Judgment of IPO Fraud Charges against Two Top Executives and Settles with Another
SEC v. Patrick A. Grotto, Mark B. Leffers and Jon M. Bloodworth
- 2006
- $1 Million
Former CEO and CFO found to have engaged in a fraud to close Busybox.com, Inc.’s IPO after its underwriter failed to sell the full committed allotment of securities to bona fide investors. The scheme involved insider purchases using undisclosed payments styled as bonuses and legal fees. Proceeds to the issuer reduced by over $2.1 million. General Counsel (Bloodworth) settled without admitting or denying the charges.
