Regulators charge Clearwater Beach man in securities fraud
September 29, 2020 - The U.S. Securities and Exchange Commission has charged Clearwater Beach resident Todd Zinkwich with engaging in a fraudulent scheme to manipulate the market for numerous microcap stocks. Without admitting or denying the SEC's allegations, Zinkwich consented to entry of a judgment that enjoins him from violating antifraud provisions of the Securities Exchange Act, a news release from the agency said. He also consented to a penny stock bar, with monetary relief to be determined by the court. The settlement is subject to court approval. According to a complaint filed in federal court in Massachusetts, individuals and groups who held large quantities of microcap stocks paid Zinkwich hundreds of thousands of dollars to facilitate a scheme to drive up demand for the stocks of certain issuers. Zinkwich allegedly arranged for an associate to generate an appearance of increased demand for the stocks. The trading scheme generated the false appearance of an upsurge of trading in the companies' stock and allowed Zinkwich's clients to sell millions of shares of stock into the public market at inflated prices, the SEC said.