If at first you don't succeed, try again.
That appears to be the guiding principle for Daryl O. Anderson, 41, of Henderson.
Anderson was one of the defendants named in June in a federal court judgment over the $64 million CMKM Diamond stock fraud.
He was a stock broker at now-closed NevWest Securities which sold CMKM stock. Many of the shares were purchased by NASCAR race fans around the country because CMKM was promoted at NASCAR events.
While CMKM was promoted as a mining company, U.S. District Judge Larry Hicks ruled that CMKM had no legitimate business.
That lawsuit was handled by the Los Angeles office of the Securities and Exchange Commission in June. On Thursday, the SEC's Fort Worth, Texas, office sued Anderson and accused him of a "stock scalping scheme" involving over-the-counter stock Cloudtech Sensors.
Stock scalping is the illegal practice of recommending others buy a security or stock while secretly selling the security or stock.
"During the scalping scheme, he secretly sold 323,405 of his personal Cloudtech shares, realizing a profit of $930,852," the lawsuit said.
Attempts to reach Anderson for comment were unsuccessful.
Anderson worked as a registered representative in the brokerage business for 14 years, according to the lawsuit.
In 2007, however, he ended his association with a stock brokerage and began working independently, recommending stocks and trading accounts for investors, the SEC said in court papers.
He convinced 40 investors to open accounts at a brokerage, which was not identified, and sometimes opened accounts for them.
Investors paid $3 million for 1 million shares of Cloudtech, causing the stock price to surge 358 percent to a high of $4.35 a share in October 2007. The investors include individuals who were Anderson's brokerage clients earlier.
The SEC asked a federal judge to permanently enjoin Anderson from violating securities laws and to force Anderson to disgorge the money obtained through the illegal scheme.
Las Vegas Review-Journal writer Arnold Knightly contributed to this report. Contact reporter John G. Edwards at jedwards@ reviewjournal.com or 702-383-0420.