SEC charges Chicago biofuel company over pump and dump scheme

In Washington, The Securities and Exchange Commission has charged a purported biofuel company in Chicago and a dozen individuals in a pump-and-dump scheme that generated $4.4 million in illicit profits.

The SEC alleges that Bosko R. Gasich, a founder and principal shareholder of Zenergy International caused the company to enter into a reverse merger with a publicly traded shell entity called Paradigm Tactical Products.  Using backdated convertible debt, Gasich caused Paradigm to issue 300 million shares of purportedly unrestricted stock to his family and friends, a lawyer who served as transaction counsel, stock promoters, and associates of Paradigm.