The Securities and Exchange Commission today suspended trading in Grupo Resilient International, which claims to operate mobile broadband trailers that assist Hurricane Harvey relief efforts.
As disaster survivors know, access to reliable broadband (like food, water, fuel, and electricity) has emerged as one of the most valuable commodities during storm recovery efforts. Now, add this nugget of info to the mix: Grupo Resilient claims to have a "FEMA approved contractor" on the board of a subsidiary, but SEC the is raising questions about the company's current and previous business claims.
Grupo, previously known as Paradise Ridge Hydrocarbons, is a penny stock that trades under the ticker symbol GRUI. Despite being publicly held, Grupo's website is still listed as coming soon, according to a splash screen.
The SEC didn't indicate what actions, if any, the commission intends to pursue against Grupo. ChannelE2E could not reach Grupo for comment.
SEC Closely Monitors Alleged Hurricane Harvey, Irma Relief Scams
Under the federal securities laws, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met, the commission said in a prepared statement.
Earlier this month, the SEC issued an alert that warned investors to be vigilant for investment scams related to Hurricanes Harvey and Irma, noting that scam artists often exploit the latest crisis in the news cycle to lure investors into supposedly promising investment opportunities, the SEC said.
