SEC Litigation Releases

Day Trader Patel Charged $5M Market Manipulation from Puerto Rico

The SEC filed charges against day trader Harsh V. Patel in federal court in the Southern District of New York for an alleged market manipulation scheme conducted from San Juan, Puerto Rico. The complaint alleges Patel manipulated stock prices on more than a thousand occasions across hundreds of stocks from May 2021 to January 2024, generating more than $5 million in ill-gotten gains through a layered trading scheme involving small lot market orders, non-bona fide limit orders, and cancellation of buy orders after selling at inflated prices. The SEC charged Patel with violating Section 17(a) of the Securities Act of 1933, Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5, seeking permanent injunctions, a conduct-based injunction, disgorgement with prejudgment interest, and a civil penalty.

Final Judgment Against Investment Adviser Kevin N. Richards for Unregistered Securities Offerings

The SEC obtained a final judgment against Kevin N. Richards, who was charged with selling approximately $12 million in unregistered oil and gas securities to approximately 25 retail investors and acting as an unregistered broker while failing to disclose conflicts of interest. The final judgment orders Richards to pay disgorgement of $618,794, prejudgment interest of $128,915, and a civil penalty of $50,000, totaling $797,709. Richards was also permanently enjoined from violating securities laws and barred from acting as a broker, dealer, or investment adviser for five years.

SEC v. Basile et al. - $16M Crypto Token Fraud (SAFTs)

The SEC charged Donald G. Basile, GIBF GP, Inc., and Monsoon Blockchain Corporation with securities fraud in a $16 million SAFT (Simple Agreement for Future Tokens) offering for a cryptocurrency called Bitcoin Latinum (LTNM). The SEC alleges Basile falsely claimed LTNM was insured with up to $1 billion in coverage and asset-backed by an existing trust, when no such insurance or trust existed. The SEC further alleges Basile misused millions in investor funds for personal expenses including real estate, credit card payments, and a $160,000 horse purchase. The SEC seeks injunctive relief, disgorgement, civil penalties, and an officer-and-director bar against Basile.

Sudheesh Nambiar Charged in $44M Ponzi-Like Scheme

The SEC charged Sudheesh Nambiar, a Milpitas, California resident and investment adviser, with orchestrating a Ponzi-like scheme that fraudulently raised approximately $43 million from over 400 investors from November 2018 through May 2024. Nambiar allegedly promised investors annual returns of 20-40% and provided false account statements showing profitable trades while suffering actual trading losses of approximately $21 million. In a related scheme, Nambiar allegedly raised approximately $900,000 from nine investors through a private fund offering. The SEC seeks permanent injunctions, civil penalties, and disgorgement with prejudgment interest.

Final Judgment Against Peter Quartararo for $249,000 Offering Fraud

On March 31, 2026, the U.S. District Court for the Eastern District of New York entered a final judgment by default against defendant Peter Quartararo for an offering fraud scheme. Quartararo was permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. In a parallel criminal action, Quartararo pleaded guilty and was sentenced to two and a half to seven and a half years in prison with $249,000 in restitution ordered.

Spartan Trading Company et al. - Multi-Million Dollar Securities Fraud Final Judgments

The SEC obtained final judgments exceeding $2 million against Spartan Trading Company and the estates of its founders for an alleged offering fraud. From 2019 to 2023, defendants raised over $3.7 million from Twin Cities investors under false pretenses of pooled investing while providing fictitious positive return statements and diverting over $1.9 million for personal withdrawals.

SEC Final Consent Judgment Against Christopher Joseph Bongiorno for Securities Fraud and Unregistered Broker Activity

The SEC obtained a final consent judgment against Christopher Joseph Bongiorno in the Northern District of Ohio on April 7, 2026. Bongiorno was found liable for defrauding investors through cold-calling solicitations for US Lighting Group and Petroteq Energy securities between September 2015 and November 2018, receiving over $2.3 million in gross commissions and misappropriating $30,000 from two investors. The judgment permanently enjoins Bongiorno from securities violations and acting as a broker, with a five-year prohibition on soliciting investors to purchase securities.

Geoffrey Allen Wall - Final Consent Judgment - Penny Stock Pump and Dump Scheme

SEC obtained a final consent judgment against former stockbroker Geoffrey Allen Wall for participating in a fraudulent penny stock pump and dump scheme. Wall is permanently enjoined from securities violations and barred from penny stock offerings, and ordered to pay disgorgement of $3,187,277 plus $1,081,662 in prejudgment interest. The scheme, conducted from at least 2012 through 2016, involved a fraudulent offshore trading platform.

SEC Charges Backswing Ventures GP LLC and Kyle James Asman for Investment Adviser Fraud

The SEC filed charges in the U.S. District Court for the Middle District of Florida against investment advisers Kyle James Asman and Backswing Ventures GP LLC for allegedly defrauding investors in their private fund Backswing Ventures Fund I, LP through $515,000+ in excessive management fees (23%+ of capital contributions) and material misrepresentations regarding audits, fund investments, and Asman's credentials.

SEC Charges Firm for High-Yield Investment Fraud

The SEC filed civil fraud charges against Gianoplus Consortia LLC, principal Michael Peter Gianoplus, and escrow attorney Traci Leigh Bransford-Marquis for allegedly defrauding investors through a purported high-yield investment program. The scheme raised more than $6 million from at least eight investors, with over $2.4 million allegedly misappropriated in contravention of investor agreements. The complaint alleges violations of Sections 17(a)(1) and (3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder.

SEC v. Anderson - Securities Fraud Charges

The SEC filed charges against Mark D. Anderson, BBFY USA, Inc., and Captain Drake, LLC in the District of Minnesota for allegedly orchestrating a fraud scheme involving approximately $2.6 million in sham sales transactions in December 2021 and $391,000 in sham sales in 2022. The SEC alleges the defendants used false financial statements to raise approximately $1.5 million from investors in a 2022 convertible debt offering and more than $900,000 in a 2023 rights offering for preferred stock.

SEC v. Estate of Brodacki and Castle Hill Financial - Investment Adviser Fraud

The SEC charged the estate of Massachusetts investment adviser John R. Brodacki, III and Castle Hill Financial Group, LLC for breaching fiduciary duties and misappropriating approximately $1.68 million from at least 18 advisory clients. The enforcement action, filed in federal court in Massachusetts on April 2, 2026, alleges violations of Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

Smith and Dalton Charged with PetIQ Insider Trading

The SEC filed insider trading charges against Michael A. Smith, former President and COO of PetIQ, Inc., and his associate Douglas Joshua Dalton for trading ahead of Bansk Group LP's acquisition announcement on August 7, 2024. Smith purchased PetIQ stock in his ex-wife's accounts using material nonpublic information, then tipped Dalton who purchased call options, collectively generating over $200,000 in illicit profits.

SEC v. P/E Capital Investment Management Partners - Improper Fee Enforcement

The SEC obtained final judgments against Chicago-based investment adviser P/E Capital Investment Management Partners and its CEO Eliseo Prisno for charging over 200 advisory clients approximately $2.4 million in unauthorized and undisclosed quarterly fees between February 2019 and July 2023. The judgments permanently enjoin both defendants from violating antifraud provisions of the Investment Advisers Act and bar Prisno from the securities industry.

Former NewAge CEO Consent Judgment - Securities Fraud and Disclosure Violations

The SEC obtained a final consent judgment against Brent David Willis, former CEO of NewAge, Inc., for making false and misleading public statements from July 2017 through April 2019 and aiding and abetting selective disclosure of material nonpublic information. Willis agreed to a $175,000 civil monetary penalty and a five-year officer and director bar, without admitting or denying the allegations.

SEC v. Sand and Fullenkamp - Penny Stock Fraud

The SEC charged Scott Sand and Jon Fullenkamp with allegedly perpetrating a fraud scheme to misappropriate $2.6 million from two penny stock issuers from October 2020 through 2023. The defendants allegedly controlled the issuers without formal management titles, created sham agreements with Fullenkamp-controlled entities, and issued preferred shares worth millions that they sold for personal gain. Fullenkamp consented to permanent injunction, officer/director and penny stock bars, and disgorgement without admitting the allegations.

Final Consent Judgments - Southern California Residents Charged with Insider Trading

The SEC obtained final consent judgments against Brent Cranmer and Daniel McCormick, two Southern California residents, for insider trading in Kaman Corporation securities ahead of its acquisition announcement. Cranmer was ordered to pay a $50,000 civil penalty and is prohibited from serving as an officer or director of a public company for five years. McCormick was ordered liable for disgorgement of $115,598, satisfied by parallel criminal forfeiture. Combined profits from the scheme exceeded $1 million.

Titanium Capital LLC and Henry Abdo - Ponzi Scheme Enforcement

The SEC obtained final judgments against Titanium Capital LLC and its founder Henry Abdo for operating a multi-million dollar Ponzi scheme that defrauded at least 162 investors out of over $5.3 million. The court entered permanent injunctions and ordered disgorgement of $2,920,668 plus prejudgment interest of $467,933. Abdo, who pleaded guilty to wire fraud in parallel criminal proceedings, received a 168-month prison sentence.

SEC Charges Ronald Smith Insider Trading

The SEC filed insider trading charges against Ronald Smith, a Connecticut resident and registered representative for a New York-based broker-dealer, alleging he traded on material nonpublic information misappropriated from a New York investment bank. Smith generated approximately $530,000 in illicit profits and, with a colleague, recommended trades to customers resulting in millions in customer profits and hundreds of thousands in split commissions.

SEC Files Subpoena Enforcement Action Against John Olsen

The SEC has filed a subpoena enforcement action against Florida executive John Olsen and six affiliated companies in the Northern District of Texas. The action seeks to compel the production of documents and information related to an investigation into a possible market-manipulation scheme involving Mondee Holdings, Inc. securities.

SEC charges Krish Kumar for defrauding investors

The SEC filed settled charges against Oklahoma resident Krish Kumar for allegedly defrauding investors in two offerings, raising approximately $7.8 million and misappropriating nearly $7 million. Kumar consented to a judgment enjoining him from future violations and ordering monetary remedies to be determined by the court.

SEC Obtains Final Judgment Against Commonwealth Equity Services

The SEC announced it has obtained a final consent judgment against Commonwealth Equity Services, LLC, an investment adviser, for alleged failures to disclose material conflicts of interest related to revenue sharing agreements. Commonwealth has agreed to pay a civil penalty of $5 million.

SEC Obtains Consent Judgments Against Benjamin Taylor and Darina Windsor in Insider Trading Case

The SEC announced final consent judgments against Benjamin Taylor and Darina Windsor, former investment bankers, in an alleged insider trading scheme. The judgments permanently enjoin them from violating securities laws and order disgorgement and civil penalties totaling $550,000.

SEC Dismisses Civil Enforcement Action Against FAT Brands, Inc. and Executives

The SEC announced the dismissal, with prejudice, of its civil enforcement action against FAT Brands, Inc., Andrew Wiederhorn, Ron Roe, and Rebecca D. Hershinger. The dismissal was based on the facts and circumstances of the case and evidence developed in discovery.

SEC Obtains Final Judgment Against Kevan Sadigh for Insider Trading

The SEC announced that a final consent judgment has been entered against Kevan Sadigh for insider trading. The judgment permanently enjoins Sadigh from violating securities laws and orders him to pay $108,120 in disgorgement, which is satisfied by a parallel criminal forfeiture order.

SEC Obtains Final Judgment Against Kenneth Welsh for Misappropriating Assets

The SEC announced the final judgment against Kenneth Welsh, a former registered representative and investment adviser representative, for misappropriating at least $2.86 million from client accounts. Welsh agreed to be permanently enjoined from violating securities laws and is liable for disgorgement and prejudgment interest, though payment is satisfied by a restitution order in a parallel criminal case.

SEC Obtains Final Consent Judgment Against J. Bernard Rice

The SEC announced a final consent judgment against J. Bernard Rice, an alleged former executive of cannabis company American Patriot Brands, Inc. The judgment includes permanent injunctions, a five-year officer and director bar, disgorgement of $581,000 plus interest, and a civil penalty of $236,451.

SEC Charges Former Doximity CRO with Insider Trading

The SEC filed settled insider trading charges against Paul W. Jorgensen, former Chief Revenue Officer of Doximity, Inc. The charges allege unlawful trading based on material nonpublic information, resulting in approximately $2.5 million in profits and losses avoided. Jorgensen consented to a settlement including permanent injunctions and an officer/director bar.

SEC v. J. Bernard Rice - Final Judgment for Securities Violations

The SEC has filed a final judgment against J. Bernard Rice for violations of securities laws, including Section 10(b) of the Exchange Act and Section 17(a) of the Securities Act. The judgment permanently enjoins Rice from further violations and restricts his participation in the issuance or sale of securities.

SEC v. Bin Hao - Final Judgment Entered

The SEC announced the final judgment entered in the case of SEC v. Bin Hao. This action, filed in the Southern District of Florida, concludes the SEC's litigation against the defendant. The judgment imposes specific terms and penalties.

SEC Obtains Final Judgment Against Bin Hao in Ponzi Scheme

The SEC announced a final judgment against Bin Hao for his role in an alleged Ponzi scheme that targeted Chinese Americans. Hao was ordered to pay over $2.2 million in disgorgement, prejudgment interest, and a civil penalty.

SEC charges Paul Jorgensen with Doximity insider trading

The SEC has charged Paul W. Jorgensen, former Chief Revenue Officer of Doximity, Inc., with insider trading. The complaint alleges that Jorgensen traded on material nonpublic information ahead of two earnings calls, resulting in approximately $2,532,775 in profits and avoided losses.

Insider trading charges, final judgment against Kevin Van de Grift

Insider trading charges, final judgment against Kevin Van de Grift

Final judgment against Shannon Illingworth, GP Solutions

Final judgment against Shannon Illingworth, GP Solutions

Saeid Jaberian final judgment: $66,749 disgorgement, injunctions

Saeid Jaberian final judgment: $66,749 disgorgement, injunctions

Motil litigation release 26462, final judgment, $2.9M, $340K, $5M

Motil litigation release 26462, final judgment, $2.9M, $340K, $5M

SEC charges Sumit Rai, others; $10.6 million misappropriated

SEC charges Sumit Rai, others; $10.6 million misappropriated

SEC dismisses action against Guy Robert Elliott

SEC dismisses action against Guy Robert Elliott

Final judgment entered against Mendia-Alcaraz, Toltec Capital LLC

Final judgment entered against Mendia-Alcaraz, Toltec Capital LLC

Bradford consented to final judgment in Ponzi scheme

Bradford consented to final judgment in Ponzi scheme

Hudzik consented to final judgment, paying $70,000 disgorgement

Hudzik consented to final judgment, paying $70,000 disgorgement

Litigation release details final consent judgment amounts

Litigation release details final consent judgment amounts

Litigation release final consent judgments obtained December 12

Litigation release final consent judgments obtained December 12

SEC obtains final judgment against Mina Tadrus

SEC obtains final judgment against Mina Tadrus

Settled charges include final judgment, $373,885 disgorgement

Settled charges include final judgment, $373,885 disgorgement

SEC obtained final judgments against Jefferson and Early

SEC obtained final judgments against Jefferson and Early

SEC obtains final judgments against Rapid Therapeutic Science Laboratories

SEC obtains final judgments against Rapid Therapeutic Science Laboratories

San Miguel charged with fraud; final judgment entered

San Miguel charged with fraud; final judgment entered

SEC obtains final consent judgment against Oppenheimer & Co. Inc

SEC obtains final consent judgment against Oppenheimer & Co. Inc

Executives Collins and DiMeo ordered to pay disgorgement

Executives Collins and DiMeo ordered to pay disgorgement