Trading is halted in ForceField Energy (FNRG -21.6%) following a disclosure that founder and majority shareholder Richard St-Julien has resigned as Chairman and all other positions with the company.
FNRG says St-Julien's resignation is the result of his April 17 arrest; the company says it does not know the basis of the arrest, but Bloomberg reports that he will be charged with alleged conspiracy to manipulate share prices with help from stock promoters.
FNRG also issues a business update, which includes news that it divested its interest in Trans Pacific Energy and its TCS business, which the company says will enable it to focus on its LED business.
A blog post late last week from MoxReports said FNRG was little more than a stock promotion and accused some company execs of having close ties to past fraudulent companies and activities.
ForceField Energy (FNRG -16.1%) is sharply lower for a second straight day following a negative MoxReports blog that described the company as "out of money" and little more than a stock promotion, and accused some execs of having "close ties to past fraudulent companies and activities."
In response, FNRG says the report contains "numerous errors of facts, speculation and interpretations of events," says it has disclosed all material information in compliance with SEC regulations, and no member of its executive team has any regulatory or civil violations as implied in the report.