SEC Halts Trading of Unifirst Stock in Broker Inquiry
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IRVINE — The Securities and Exchange Commission on Friday suspended trading for 10 days in the stock of an Irvine developer of child-care centers as part of a nationwide investigation into alleged market manipulation by some stockbrokers.
Sources close to the investigation indicated that neither Unifirst Corp., a penny-stock company based in Irvine, nor its executives are presently under investigation. They said SEC agents are investigating a select group of brokers and the company’s promoters for giving investors allegedly falsified financial statements regarding Unifirst.
Unifirst President Wayne Wood said Friday that the problems began after his company agreed to merge with a Nevada shell company called Whitehall Development so that Unifirst could make a public offering. Unifirst developed a child-care center in Rancho Santa Margarita.
Unifirst employs about 20 people.
The SEC said the trading ban will continue until Jan. 7.
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