Washington, D.C., July 2, 2009 – LawFuel.com – The Securities and Exchange Commission today suspended trading in the securities of Fort Lauderdale-based music production company GenX Corporation amid questions about the accuracy and adequacy of publicly disseminated information appearing in stock promotional materials about the company and its purported relationships with music stars.
GenX Corporation trades on the Pink Sheets (GNXO), and its stock is extensively promoted through brochures and other materials. One promotional brochure entitled “World of Investment” claims that the company has partnerships with several well-known recording artists and music producers, including Kanye West, T.I., and Pharrell Williams. This brochure was recently mailed to more than one million prospective investors.
“When there are questions about the accuracy and adequacy of information pertaining to a public company, especially one that is new and thinly traded, there is a potential for market manipulation including pump-and-dump schemes,” said John Reed Stark, Chief of the SEC’s Office of Internet Enforcement. “A trading suspension allows all relevant market participants to stop and take a breath to minimize the potential of fraud and investor losses.”
The SEC’s trading suspension will last for 10 business days, commencing today at 9:30 a.m. ET and terminating at 11:59 p.m. ET on July 16, 2009.
The SEC’s Online Complaint Center can be reached at [email protected] Information from the public may alert the SEC to an unfair practice or fraudulent misconduct in the securities industry.