SAN DIEGO — The U.S. Securities and Exchange Commission has filed charges against three individuals and a California-based company for securities fraud, alleging they misled investors while promoting the stock of a struggling microcap firm, as announced by federal regulators.
The SEC claims that Brett Rosen and Deborah Braun, both residents of California, along with their company, RB Capital Partners Inc., executed a long-term scheme to promote the stock of Solar Integrated Roofing Corporation on social media, all while secretly selling their own shares for substantial profits. Additionally, the SEC has charged David M. Massey, the former CEO of Solar, with securities fraud for allegedly making false statements in a company press release.
The civil complaint, which was filed on January 21 in the U.S. District Court for the Southern District of California, alleges that from at least January 2021 to June 2024, Rosen and RB Capital advertised Solar’s stock as a promising long-term investment while simultaneously offloading significant amounts of their shares without informing the public about these sales.
Braun, a co-owner of RB Capital, is said to have supported the scheme by monitoring the firm’s sales of Solar stock and providing additional assistance, according to the SEC.
Regulators further allege that in February 2023, Massey instructed Solar to release a statement falsely asserting that the company had obtained a $10 million line of credit from a major national bank. The SEC noted that Solar’s stock price surged by approximately 40% the next day, with trading volume increasing nearly fivefold.
The SEC has charged Rosen and RB Capital with breaching federal securities laws that prohibit fraud, while Braun faces accusations of acting as a control person and aiding and abetting the alleged wrongdoing. Massey is charged with making false and misleading statements to investors.
