Dec 20, 2011 7:18 PM by Matt Stafford

Former NFL player, 5 others named in SEC lawsuit

LOS ANGELES (AP) - The Securities and Exchange Commission is suing former NFL wide receiver Willie Gault and five others, accusing them of a scam to artificially inflate the stock of a heart monitoring device company.

Federal regulators filed a civil complaint Tuesday in Los Angeles alleging that Gault, talent agent J. Rowland Perkins and attorney Mitchell Stein defrauded investors. The lawsuit seeks the return of ill-gotten gains.

Authorities say Stein reaped nearly $8 million using Gault's and Perkins' celebrity status to foster investor confidence in Heart Tronics Inc., which sells electrocardiograms. Stein and Gault are accused of diverting investors' money for their personal use.

Jared Scharf, who represents Heart Tronics, Gault and Perkins; denies the allegations. It's unknown if Stein has retained an attorney.

The complaint describes the three other defendants as a stock promoter, a stockbroker and a handyman.


»Topics in this article

More News

Story Photo

27 minutes ago

Adams Cafe on the move

Adams Mountain Cafe makes its move this week after floods damaged the popular eatery the last two summers. But the move has...

Story Photo

1 hour ago

Soldier's remains return

After a decades-long mystery, the family of a World War II soldier finally has some closure. Army Sgt. William Carneal, who disappeared...

Weather - Forecast
Story Photo

8 minutes ago

Cooler Thursday

Windy early with blowing dust in some areas. Wind ending overnight tonight. An isolated thunderstorm possible early. Overnight low temperatures will drop...

Most Popular

Top Videos

1 2 3 4