A Medical Device Daily

The Securities and Exchange Commission reported that a federal judge has imposed a civil penalty of $10,000 against Sheldon Strauss of Cleveland, a defendant in a previously-filed civil injunctive action involving a multi-faceted scheme to manipulate the stock price of Competitive Technologies (CTT; Fairfield Connecticut), a technology development company.

In addition, the judge permanently enjoined Strauss from violating the antifraud provisions of the federal securities laws. These remedial penalties follow a Nov. 29, 2007, verdict for the commission on all of its securities fraud charges against Strauss after a three-week jury trial in Bridgeport, Connecticut.

The SEC's complaint, which was filed against a total of eight defendants on Aug. 11, 2004, alleged that the defendants participated in a scheme to manipulate and inflate the price of CTT stock from at least July 1998 to June 2001.

It said that the defendants artificially raised and maintained the price of CTT's stock and created a false or misleading appearance with respect to the market for CTT stock through manipulative practices such as placing buy orders at or near the close of the market in order to inflate the reported closing price, placing successive buy orders in small amounts at increasing prices, and using accounts they controlled or serviced to place pre-arranged buy and sell orders in virtually identical amounts.

The SEC also said that on April 8, the court determined that a bar from serving as an officer or director of any public company was not warranted against CTT's former CEO, defendant Frank McPike of Ridgefield, Connecticut. On Oct. 31, 2007, the court entered a final judgment by consent against McPike, enjoining him from violating Sections 9(a) and 10(b) of the Exchange Act and Rule 10b-5 thereunder and ordering him to pay a civil penalty of $60,000, but leaving the issue of an officer and director bar open.