Cemtrex, Inc. (CETX) Accused of Scheming to Manipulate the Company’s Stock
According to the complaint, Cemtrex insiders schemed to use the company for their own private gain by manipulating its common stock. In furtherance of this conspiracy, Cemtrex used acquisitions to give the illusion of a prospering company while simultaneously lining the pockets of its prominent insiders through related party transactions, lucrative incentive awards, and unreported stock sales. In the process, Cemtrex officials not only avoided their mandatory reporting responsibilities to report all transactions involving Cemtrex securities, but concealed the exchange of debt instruments for additional securities. When the discrepancies in Cemtrex’s reported insider holdings and misrepresentations about the performance of the company’s automotive business were brought to investors’ attention in February 2017, Cemtrex’s stock price plummeted and has since continued to decline.