The SEC permanently enjoined a New York attorney for allegedly being involved in a fraudulent pump-and-dump scheme.  In its complaint, the SEC made the following charges regarding Michael Krome, 50, a lawyer licensed in the state of New York:

• Individuals operating through Red Sea Management, Ltd., perpetrated a fraudulent pump-and-dump scheme involving the common stock of CO2 Tech Ltd..
• Red Sea Management was a Costa Rican asset protection company.
• The relevant period ran from late 2006 through April 2007.
• Perpetrators used the services of Krome to issue a fraudulent opinion letter, which enabled them to have the restrictive legend removed from their CO2 Tech stock certificate, giving them nearly full control over the freely tradeable shares of CO2 Tech stock.
• Perpetrators caused materially false and misleading information about CO2 Tech to be disseminated in press releases and on its website.
• Defendants then used Red Sea to sell massive quantities of CO2 Tech stock to the investing public through its web of nominee brokerage accounts.

SEC Sanctions. Krome is suspended from appearing or practicing before the Commission as an attorney.  He's also barred from participating in any offering of penny stock.   [SEC '34Act Release 65799, 11/21/11]