Herald staff
MOUNTLAKE TERRACE — The U.S. Securities and Exchange Commission charged a software company here with fraud for claiming it had bought software for $10 million in cash and stock when it had only $138.
YourBankOnline.com allegedly inflated the value of the software in both press releases and its SEC filings, the federal agency charged Wednesday. That resulted in a brief spike in the company’s stock.
The stock was valued between $2 and $5 per share in the agreement, even though it was trading at just 20 to 50 cents. The actual value of the deal was worth about $800,000, according to the SEC complaint. No cash traded hands, the SEC said, adding that the company only had $138.
After the deal was announced, YourBankOnline.com issued a number of press releases lauding the new software, sending its stock price up to $32 per share. It closed at 81 cents Wednesday in electronic bulletin board trading.
A call to YourBankOnline.com President Pakie Plastio, also charged in the case, was not returned Wednesday.
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