3 weeks ago
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A La Jolla couple has been indicted by a federal grand jury in San Diego and sued by the U.S. Securities and Exchange Commission on allegations that they operated a yearslong pump-and-dump securities fraud scheme that netted them and their company more than $100 million in earnings.
Brett David Rosen, 45, and Deborah Rachel Rosen, 44, are accused of criminally engaging in a market manipulation scheme in which they and their investment firm, RB Capital Partners, allegedly promoted the stock of six publicly traded companies while they secretly dumped their own cheaply-acquired stock in those companies.
The SEC’s civil suit focuses on the couple’s alleged conduct related to one of the six companies. The suit also names that company’s former CEO as a defendant and accuses the Rosens and RB Capital Partners of using social media and news releases “to promote the stock of a struggling public company … while simultaneously making massive, undisclosed sales of their own … stock at enormous profits.”
The Rosens, who allegedly used the illicit profits to buy a lavish multi-million-dollar home in La Jolla, were in custody and made initial appearances Wednesday in federal court in San Diego. They pleaded not guilty to charges in a 24-count indictment alleging conspiracy to commit securities fraud, money laundering and conspiracy to commit money laundering.
Federal prison records showed both appeared to still be in custody Thursday. A defense attorney whom B...
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