The U.S. Securities and Exchange Commission has suspended for 10 days the trading of all stocks for Addison-based Grupo Resilient International in an apparent concern over the accuracy of some of the company’s press releases.
The SEC, in an order issued late Thursday, states the federal agency has “questions regarding the adequacy and accuracy of statements” Grupo officials made in a Sept. 7 press release regarding the company’s efforts to help disaster recovery efforts in South Texas related to Hurricane Harvey.
“The Commission is of the opinion that the public interest and protection of investors requires a suspension of trading in the securities of [Grupo Resilient], the SEC order states.
The SEC also used the Grupo announcement to remind 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.
“This is further reminder of the need for vigilance when investing in penny stock companies, especially when they are being touted in connection with humanitarian aid during a natural disaster such as Hurricane Harvey,” Stephanie Avakian, co-director of the SEC’s Division of Enforcement, said in a written statement.
Grupo was trading at three-cents-a-share when trading of its stocks were halted by the SEC.
“Investors are reminded to keep on the lookout for schemes that seek to attract people who are eager to invest with companies that genuinely provide assistance to those in need,” she said.
Grupo Resilient, which describes itself as a “diversified international holding company … with subsidiaries focusing on infrastructure technologies, real estate, energy, health and wellness,” trades under the ticker symbol GRUI.
The Grupo press release in question is dated Sept. 7 and is posted on MarketWatch and numerous other websites. The announcement states that Julio Lopez, who is identified as “a FEMA approved contractor and OSHA instructor,” had joined the board of Resilient Infrastructure, which is a subsidiary of Grupo.
The press release stated that the company “is currently mobilizing workers for disaster assistance” in Houston.
“GRUI can also mobilize far more workers and equipment under its network of companies which subcontract and offer services to disaster relief efforts,” Grupo’s press release states. “GRUI is currently deploying workers experienced in demolition, debris-removal, clean-up, waste hauling and waste disposal.”
Efforts to contact officials at Grupo have been unsuccessful.