SEC Enforcement Matters Led by SEC Office of Internet Enforcement

Significant SEC Enforcement Matters Led by the Office of Internet Enforcement During Stark Tenure

SEC v. Sidney S. Hanson, Charlotte M. Hanson, Queen Shoals, LLC, Queen Shoals II, LLC, Queen Shoals Capital, LLC, Queen Shoals Fund, LLC, Queen Shoals Group, LLC, Queen Shoals Holdings, LLC, Dominion Growth Fund, LLC, Dynasty Growth Fund, LLC, Heritage Growth Fund, LLC, Secure Wealth Fund, LLC, Select Fund, LLC, Two Oaks Fund, LLC (Fraudulent scheme that bilked $32.5 million from approximately 500 investors by falsely promising extraordinarily high returns)

In the Matter of Helmerich & Payne, Inc. (FCPA matter involving unlawful payments to South America)

SEC v. Pointer Worldwide Ltd. (Fraudulent scheme to manipulate the prices of numerous stocks through the unauthorized use of other people’s online brokerage accounts)

In the Matter of Trading in the Securities of GenX Corporation (Trading suspension of purported digital music company)

In the Matter of Trading in the Securities of Patriot Energy Corporation (Trading suspension of purported alternative energy company)

SEC v. James Nicholson and Westgate Capital Management LLC and Relief Defendants (Hedge fund fraud)

SEC v. Butko (Fraudulent scheme to manipulate the prices of numerous stocks through the unauthorized use of other people’s online brokerage accounts)

In the Matter of E*Trade Clearing LLC and E*Trade Securities LLC (Anti-money laundering action concerning E*Trade's failure to vet 65,442 of its joint account holders for possible terrorism links, failure of broker-dealer to comply with the reporting, recordkeeping, and record keeping requirements with respect to regulations implemented under the Bank Secrecy Act)

SEC v. George J. Simchuk (Former mining manager of Glamis de Mexico settles to insider trading violation for purchasing shares of Western Silver company while he worked on the Glamis due diligence team for Glamis' potential acquisition of Western Silver)

SEC v. Michael A. Stummer (Daytrader commits unlawful deception when he sneaks into brother-in-law's computer in brother-in-law's bedroom, reviews material, nonpublic information about possible tender offer by brother-in-law's private equity firm's client and trades on the basis of that information)

In the Matter of Certain Companies Trade in the Pink Sheets: NeoTactix Corporation, Graystone Park Enterprises, Inc. and Younger America, Inc. (SEC suspends trading in three companies promoted through spam and internet videos – including on YouTube)

In the Matter of Kenneth M. Christison, Esq. (SEC order finding attorney caused an unlawful distribution of securities in multimillion dollar pump-and-dump scheme)

SEC v. Michael Saquella a.k.a. Michael Paloma and Lawrence Kaplan (Intricate microcap pump-and-dump scheme; filed parallel with U.S. Attorney's Office for the Eastern District of Virginia)

SEC v. Shane Bashir Suman and Monie Rahman (Unlawful insider trading by information technology specialist at MDS, Inc. [and his wife] prior to a tender offer by Molecular Devices Corporation; filed parallel with the Ontario Securities Commission)

Vision Airships Trading Suspension

SEC v. CyberKey Solutions Inc. and James Plant (False press releases issued concerning purported contract with the Department of Homeland Security; parallel criminal arrest by U.S. Attorney's Office for the Eastern District of Pennsylvania)

SEC v. Jaisankar Marimuthu, Chockalingam Ramanathan and Thirugnanam Ramanathan (Fraudulent scheme to manipulate the prices of numerous stocks through the unauthorized use of other people’s online brokerage accounts; filed parallel with U.S. Attorney's Office in the District of Nebraska)

SEC v. Shashikant C. Shah (Unlawful insider trading by Able Laboratories, Inc.'s vice president concerning his concealment from the Food and Drug Administration of Able's faulty quality control testing practices; filed parallel with U.S. Attorney's Office for the District of New Jersey)

SEC v. One or More Unknown Traders in the Common Stock of Certain Issuers and JSC Parex Bank (relief defendant) (Emergency asset freeze of $3 million of unlawful profits of fraudulent scheme to manipulate the prices of numerous stocks through the unauthorized use of other people’s online brokerage accounts)

SEC v. Daniel Fongnien Chiang and Eva Yi-Fen Chen (Unlawful insider trading by husband and wife in the securities of SINA Corp.)

CyberKey Solutions Inc. Trading Suspension

SEC v. Kamardin (Fraudulent scheme to manipulate the prices of numerous stocks through the unauthorized use of other people’s online brokerage accounts)

In the Matter of Able Laboratories, Inc. (De-registration)

In the Matter of Timothy F. Bell and In the Matter of Tracy A. Edwards (Private placement stock fraud; filed parallel with U.S. Attorney's Office for the Central District of California, which prosecuted related defendant)

SEC v. Salvatore Favata (Fraudulent Ponzi scheme of so-called "investment notes" purportedly based upon mortgages and deeds of trust for real estate investments; joint filing with U.S. Attorney's Office for the Central District of California)

SEC v. Peter D. Kirschner and Media Magic, Inc. and In the Matter of Peter D. Kirschner (Fraudulent procurement of stock dividend shares in advance of the date on which they were to be publicly distributed and selling those shares into an uninformed market at prices that did not yet reflect the increase in the total number of outstanding shares)

SEC v. Boling, Boling, Mills and Direct Results of Sweetwater (Phase II of so-called "vicemail" stock manipulation scheme, including charges against the voice behind the calls; filed parallel with U.S. Attorney's Office for the District of Columbia)

SEC v. Alexander J. Yaroshinsky and Victor E. Zak (Emergency asset freeze of California drug executive with unlawful insider trading after learning of the FDA's reaction to cancer tests of company's Acne drug)

SEC v. Shawn Casius, Logic's Consulting, Inc., Steven R. Wright, International Solutions, Inc., Peter Jessop, Socius Holdings, Ltd., and SIGF SA (Emergency asset freeze concerning concerted market manipulation of the stock of Cameron International)

Cameron International, Inc. Trading Suspension

In the Matter of Instinet LLC and INET ATS, Inc. (Failure to file accurate Order Execution Quality Reports – first matter of this kind ever charged by SEC; joint filing with NASD [now FINRA])

In the Matter of Ford Motor Credit Company (Unlawful marketing of $7.3 billion of debt securities in so-called "corporate money market accounts" – first matter of this kind ever charged by SEC)

SEC v. Viktor Novosselov (a/k/a David Markowitz), Igor Malyar (a/k/a George Falcone and Michael Safir), Blue Square Management, Inc., and Westwood Holdings, Inc. (Fraudulent offering of ATM companies; filed parallel with U.S. Attorney’s Office for the District of Connecticut)

SEC v. StockerYale, Inc. and Mark W. Blodgett (Failure to verify information in two false and misleading press releases)

In the Matter of DB Investment Advisers;
In the Matter of Galleon Management L.P.; and
In the Matter of Oaktree Capital Management (Hedge funds' multiple violations of SEC Regulation M and Rule 105)

SEC v. Michael O'Grady, Peter Cahill, David E. Wittimore, et al (So-called "vicemail" stock manipulation scheme; criminal action filed parallel by U.S. Attorney's Office for the District of Columbia – first matter of this kind ever charged by SEC)

SEC v. Z-Par Holdings, Inc., Z-Par Investment Fund II, Larry Michael Parrish, Michael Edward Zimmerman, defendants, and Eduard Akopian a/k/a Edward Akopian, and Capital Ban Corp., A California Corporation, relief defendants (Emergency asset freeze of up to $17 million of assets raised in prime bank scheme)

SEC v. Anthony C. Sudol III, Michael G. Sudol and Richard J. Sudol (Unlawful insider trading in the securities of certain CISCO acquisition targets)

SEC v. Hubert A. Jeffreys, a/k/a Hugh Jeffreys, Earthboard Sports USA, Inc., Timothy F. Bell and Tracy A. Edwards (Private placement stock fraud; filed parallel with U.S. Attorney's Office for the Central District of California)

Commanche Properties, Inc. Trading Suspension

Courtside Products, Inc. Trading Suspension

SEC v. Discover Capital Holdings Corp., Eli Dinov, Ari Dinov, and David Rubinov (Emergency asset freeze concerning boiler-room market manipulation)

SEC v. Van Dinh (Hacking, identity theft, and securities fraud; filed parallel with U.S. Attorney’s Office for the District of Massachusetts – first matter of this kind ever charged by SEC)

SEC v. Andrew Gold (Violative pattern of SEC reporting violations)

SEC v. K.C. Smith and Kryer Financial (Hacking, identity theft, and securities fraud; filed parallel with U.S. Attorney’s Office for the Eastern District of Virginia and U.S. Attorney's Office for the Eastern District of Tennessee)

SEC v. Clif Goldstein, formerly known as Clifford Dixon Noe, Paul Howe Noe, also known as Paul Noe Randall, Carolyn M. Kaplan, Noel Alelov, Russell B. Gerstein, Nuell W. Paschal, Great American Trust Company, Inc., and Great American Trust Corporation, Inc. (So-called "prime bank fraud;" filed parallel with U.S. Attorney’s Office for the District of South Carolina)

SEC v. Kin H. Lee (Market manipulation in the after-hours marketplace – first matter of this kind ever charged by SEC)

SEC v. Nikolai Safavi (Impersonation/market manipulation)

SEC v. Arash Aziz-Golshani, Hootan Melamed and Allen Derzakharian (Emergency asset freeze concerning market manipulation of stock of NEI Webworld; filed parallel with U.S. Attorney’s Office for the Central District of California)

SEC v. William Lyons and SV Group (So-called "prime bank fraud")

About John Reed Stark

John Reed Stark's Profile Image John Reed Stark President of John Reed Consulting LLC. Served for 15 years as an SEC enforcement attorney leading cyber-related projects, investigations and enforcement actions; for 11 years as Founder and Chief of the SEC Office of Internet Enforcement; for 15 years as an Adjunct Professor at Georgetown University Law School teaching a law and technology course; for 10 years as a Guest Instructor teaching law enforcement and technology training sessions at the FBI Academy. Worked for over five years as Managing Director (three as head of the Washington, D.C. office) of a global digital risk management firm, leading cybersecurity, incident response and digital compliance engagements for corporations and regulated entities. Author of The Cybersecurity Due Diligence Handbook.