U.S. District Court Enters Final Judgments Against Defendants in Penny Stock Fraud Scheme, Ordering $39 Million in Penalties and Disgorgement

Alexander J. Dillon, Cosmin Panait, as well as their respective corporate entities GPL Ventures LLC & GPL Management LLC were ordered to pay over $39 Million in civil penalties & disgorgement by the U.S. District Court for the Southern District of New York. The Securities and Exchange Commission had accused them of engaging in a penny-stock fraud scheme and acting unregistered as dealers.

According to the SEC’s complaint, which was filed on 13 August 2021, defendants had been involved in acquiring microcap stock at discounted rates and selling them to investors publicly without being registered as security dealers. The complaint also claimed that the defendants orchestrated a fraud scheme involving HempAmericana, Inc., in which they purchased shares and arranged to have the company use a portion from the stock sale proceeds for stock promotion while they sold their shares.

The defendants consented to entry of final judgements without admitting nor denying the allegations contained in the SEC complaint. The judgments permanently bar them from violating applicable securities laws. They also order them to pay $3,500,000 in civil money penalties, as well as $29681,569 of disgorgement and $2,489799 in prejudgment. The defendants are also ordered to cancel and surrender all unconverted convertible bonds with a value of about $11 million. In addition, the defendants are barred from penny stocks for five years.

Brenda Chang was responsible for the SEC’s investigations, along with John C. Lehmann. Peter A. Lamore and Adam S. Grace were also involved. Paul Gizzi is handling the ongoing litigation against defendants. Brenda Chang and John C. Lehmann are also involved. Thomas P. Smith, Jr. supervises the case.

Recover Investment Losses

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It is important to act quickly if you believe you may have been a victim of an investment fraud. The investment fraud lawyers will assess your case, and then guide you to determine the most effective way to recover losses. Also, it’s important to know that if you don’t recover, there won’t be any fee.

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Securities and Exchange Commission is the regulatory agency of the United States. Its primary responsibility is to protect investors and maintain fair and efficient markets. It does this by implementing a number of measures.

1. Enforcement of securities law: The SEC enforces federal security laws by investigating violations, bringing enforcement action against wrongdoers and imposing sanction when necessary. This deters fraudulent activity and helps ensure that investors aren’t misled or hurt.

2. The SEC is responsible for regulating and supervising the securities industry. This includes stock exchanges, brokerages, and investment advisers. The SEC sets standards and rules to ensure that these markets are transparent, fair, and accountable, protecting investors’ interest.

3. Disclosure Requirements: The SEC requires companies to disclose accurate and comprehensive information to investors. Public companies are required to submit regular reports such as quarterly and annual filings that contain financial statements. Investors will have reliable information at their fingertips to make informed decisions.

4. Investor Education and Advocacy: The SEC aims to educate and empower the investor through various resources including publications, tools online, and educational programmes. The SEC aims to improve investors’ knowledge of investment products, market dynamics and risks. This will help them make better decisions and avoid fraud.

5. Market surveillance: SEC monitors the market and conducts investigations to detect possible misconduct, insider trading and other illegal activities. By maintaining surveillance, SEC ensures that markets function fairly and efficiently and that investors don’t face any undue disadvantages or risks.

The SEC is a vital player in protecting investors. It enforces securities laws, regulates the industry, promotes transparency, educates investors, and monitors market activity. Its efforts are aimed at fostering trust, confidence, and integrity in the securities market, thus protecting investors’ interests and contributing overall to the stability and security of the financial sector.

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