Devin Donohue Discusses Securities Fraud Scheme with the Los Angeles Business Journal

Partner Devin Donohue with Palmer, Lombardi & Donohue was quoted in the Los Angeles Business Journal article, “Coffee Maker Buzz Leaves Bad Taste,” discussing an SEC investigation of a coffee company, Jammin Java Corp., for purportedly engaging in fraudulent promotion of the company’s stock, also known as a “pump and dump” scheme. Mr. Donohue regularly handles securities regulatory and litigation matters and explained that it is possible for third parties to engage in these types of schemes without the company’s knowledge. He stated, “If the company can prove that they were not at all connected with the promoters, they’ll likely escape any liability in the case.” Mr. Donohue also commented that the SEC will likely review the emails of Jammin Java’s officers to determine whether there was any corporate connection to the scheme.