Atlas Mining's former boss settles SEC allegations

AP News
Posted: Dec 23, 2009 11:25 AM

A northern Idaho mining company's former chief executive must pay $50,000 to settle allegations he financed his company's struggling operations by illegally distributing millions of dollars worth of stock to investors.

William Jacobson, former CEO of Atlas Mining Co., is also barred from serving as an officer or director of any issuer for five years, the Securities and Exchange Commission said in a statement Tuesday.

Atlas Mining is now known as Applied Minerals Inc.

The SEC alleged Jacobson from 2002 to 2005 tried to keep Atlas afloat by orchestrating illegal stock schemes, then fabricated documents and made false statements in public filings to cover his tracks.

The company, based in Osburn, Idaho, in July settled a class action lawsuit when it agreed to pay $1.25 million to investors who claimed the company artificially inflated stock prices through false financial statements.