The Securities and Exchange Commission has suspended trading nationwide in the stock of U.S.A. Medical Corp. through March 15.
Kenneth Israel, branch chief of the Salt Lake SEC branch office, said, "Questions have been raised about the adequacy and accuracy of the publicly disseminated information concerning, among other things, financial condition of the company, the identities of its shareholders, beneficial ownership and control of the company's shares and the market for the company's securities."U.S. District Judge J. Thomas Greene had found that the stock had been unlawfully issued and was trading illegally as part of a fraudulent stock manipulation scheme.
His finding came in a suit filed by Johnson-Bowles Co. Inc., a Salt Lake stock brokerage, against U.S.A. Medical and several people associated with it.
Although he found that fraudulent manipulation had taken place, Greene denied Johnson-Bowles' request for an injunction to halt trading, saying the brokerage had been in a position to know and either did know or should have known about the problems.