SEC Files Fraud Charges Against Calif. Mining CEO

FRESNO, Calif. (AP) â¿¿ Federal authorities are accusing a Madera, Calif.-based mining company and its CEO of defrauding hundreds of investors in a scam involving a fruitless gold mining venture.

The Securities and Exchange Commission on Thursday charged Nekekim Corp. and Kenneth Carlton of Clovis with falsely luring investors to spend $16 million on the company's Nevada mine site.

Court documents filed in Fresno federal court say from 2001 to 2011, Nekekim drew in investors in the U.S. as well as Canada, Australia and Singapore. As Nekekim failed to produce mining revenue, records say Carlton gave shareholders false hopes that the company was perfecting a plan to extract gold deposits worth at least $1.7 billion.

The agency says Carlton and Nekekim neither admitted nor denied the SEC's allegations but agreed to a court order requiring Carlton to pay a $50,000 penalty.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from Stocks

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

How Small-Cap Stocks Can Protect Your Portfolio From a Trade War

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

Why Millennials Are Ditching Stocks for ETFs

Why Millennials Are Ditching Stocks for ETFs

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says