The SEC announced fraud charges and an emergency asset freeze against IST Shareholder Services and Robert G. Pearson for misusing money belonging to their corporate clients and the clients’ shareholders in order to fund their own payroll and business obligations. According to the SEC’s complaint, Pearson misappropriated more than $1.3M during the past two years from an IST bank account holding the funds of clients who use IST as a paying agent to make cash disbursements to shareholders. Pearson admitted to the scheme during questioning by SEC examiners. SEC
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