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Canadian Company's Pump-And-Dump Scheme Charged $7M

The U.S. Securities and Exchange Commission ("SEC") filed a suit against Spencer Pharmaceutical Inc. ("Spencer") and its director, Jean-Francois Amyot ("Amyot"), for an alleged pump-and-dump scheme.

The suit claims that Amyot and Spencer's executives, Maximilien Arella and Ian Morrice, collaborated with IAB Media Inc. ("IAB") and Hilbroy Advisory Inc. ("Hilbroy") to spread false rumors in November 2010 that a Kuwaiti company made an unsolicited offer to buy Spencer. In turn, it is alleged that the rumors artificially raised Spencer's stock values so investors could sell their stock at a profit.

U.S. District Judge Indira Talwani entered a default judgment against Amyot and Spencer for violating securities laws and ordered Amyot, IAB and Hilbroy to pay $5.2 million, which they made from the scheme, plus over $600,000 in interest, and a total of $1.2 million in civil penalties. Since Amyot's role in the scheme was pivotal, Judge Talwani imposed a $750,000 civil penalty against Amyot and $150,000 in penalties to IAB, Hilbroy, and Spencer because each company is now defunct.

Although Spencer's address was in Boston, MA, it was being operated in Montreal. Amyot is representing himself in the SEC case and says the process has been unfair and he cannot afford to produce an ample defense or appeal the ruling. Amyot currently faces similar charges in Canada.

The legal team at SFMS has significant experience litigating securities liability matters, including pump-and-dump matters, as well as Ponzi schemes. If you have any questions regarding this subject or this posting, please contact Chiharu Sekino ([email protected]) or Alec Berin ([email protected]). We can also be reached toll-free at (866) 540-5505.

Shepherd, Finkelman, Miller & Shah, LLP is a law firm with offices in California, Connecticut, Florida, New Jersey, New York, Pennsylvania and Wisconsin. SFMS also maintains affiliate offices in London, England and Milan, Italy, and is an active member of Integrated Advisory Group (, which provides us with the ability to provide our clients with access to excellent legal and accounting resources throughout the globe. For more information about our firm, please visit us at


Germaine, Carmen. "SEC Gets $7M Judgment n Pharma Pump-And-Dump Scheme." Law360. Last modified on October 1, 2015.

Newsham, Jack. "Boston judge orders Canadian penny stock financier to pay $7 million." Boston Globe. Last modified on October 1, 2015.

U.S. Securities and Exchange Commission. Court Orders Canadian Pump-And-Dump Operator, Massachusetts-Based Public Company, And Others Involved In Fictitious Buyout Offer To Pay Over $7 Million. Last modified on 2015. Online.

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