The Securities and Exchange Commission has filed a civil enforcement action in Texas against a Canadian citizen, accusing him of masterminding a pump-and-dump scheme.

The SEC eports that on March 2 it filed civil charges in the U.S. District Court for the Northern District of Texas (Dallas Division) against Ronald Bauer, 30, a Canadian citizen and Vancouver resident. In its complaint, the SEC alleges that Bauer masterminded a US$1.5 million international market manipulation “pump-and-dump” scheme. The allegations have not been proven.

According to the commission’s complaint, from November 2002 through January 2003, Bauer pumped the stock of The Bauer Partnership Inc. by issuing false and misleading press releases, while secretly dumping tens of millions of Bauer Partnership shares. It claims that he received ill-gotten gains of approximately US$1.5 million from the scheme.

The SEC complaint seeks a permanent injunction, officer-and-director and penny-stock bars, disgorgement with pre-judgment interest and a civil money penalty.