The SEC filed a fraud action against Edward Ellis, Sr.
and Jennifer Seidel, alleging that the two defrauded investors in connection
with the purchase of shares in their company, Sederon, Inc. SEC v. Ellis, Civil
Action No. 12-cv-1203 (E.D. Pa. Filed March 8, 2012). The case is in
Sederon is a home maintenance company headquartered in
Collegeville, Pennsylvania. By mid- 2007 the company had insufficient funds to
meet payroll and other expenses. Accordingly, the defendants sought to raise
cash by selling shares in the company to the public. From August 2007 through
October 2008 stock was sold to about 54 investors. The company raised
approximately $519,500. In selling the shares the defendants made a series of
misrepresentations, according to the complaint, including:
The defendants also failed to disclosure certain key
facts to potential investors including:
The Commission's complaint alleges violations of
Securities Act Sections 5 and 17(a) and Exchange Act Section 10(b).
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