Electronic check processor MyEcheck has sued four financial securities companies for having 1.44 billion shares of MyEcheck's stock fraudulently issued, the company announced last week.
The shares would currently have a total value of about $37 million.
In a federal lawsuit filed against Sweetsun Intertrade, Inc., Seven Miles Securities, Titan International Securities, Inc. and Scottsdale Capital Advisors Corp., said the four companies made intentional false representations to cause the issuance of 1.44 billion shares of MyEcheck stock, which the company said are void and should be cancelled.
According to a MyEcheck statement, "Beginning in November 2012 and continuing through 2013 a series of false stock issuance documents were used to fraudulently issue a total of 1.44 billion shares of MYEC stock representing approximately 35 percent of the total issued and outstanding stock and 51 percent of the public float. MyEcheck became aware of 300,000,000 fraudulently issued shares being held at Scottsdale Capital Advisors. MyEcheck notified Scottsdale that the stock was fraudulent, however Scottsdale sold the fraudulent shares after being notified by the issuer that the stock was fraudulently issued and void."
MyEcheck said it wants the 1.44 billion shares to be recovered and cancelled, as well as damages for fraud, including punitive damages against Sweetsun and Scottsdale.