SEC sues brothers in $16 mln stock scheme
WASHINGTON, Jan 29 (Reuters) - The Securities and Exchange Commission said Thursday it filed a civil complaint against two brothers,
former officials at the then MTC Electronic Technologies Inc in a $16 million stock manipulation scheme.
The SEC charged Miko Leung, 54, the former chairman of the British Columbia importer of consumer electronics, and his brother Sit Wa
Leung, 62, MTC's former corporate secretary and a member of its board of directors.
The complaint, filed today in U.S. District Court for the District of Columbia, alleges that between 1990 and 1993, the brothers orchestrated a fraud scheme that culminated in a ''pump and dump'' stock manipulation.
The scheme, dubbed a pump and dump, had the two men illegally pumping up the price of stock in MTC, then traded on Nasdaq, the electronic
stock market. The stock price rose to $30 from $5.125 per share.
SEC alleged from fiscal 1991 through 1993 MTC, now known as GrandeTel Technologies Inc (GTTIF - news), falsely claimed in public and
regulatory documents it got millions of dollars in revenues from fax machines sold in China, when no such sales occurred.
SEC said it also accused the brothers of stealing options on 1.52 million MTC shares that were to be granted to current and prospective
employees.
The commission said it is seeking permanent injunctions against both men, repayment of the ill-gotten profits, civil penalties and officer and director bars against them.
In 1997, the brothers were charged with fraud in Vancouver after they were accused of causing GrandeTel to issue 1.11 million common shares
under false pretenses in 1992 when it was called MTC and based outside Vancouver.
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