SEC Obtains Preliminary Injunction Against John Babikian
On April 20, 2014, the Securities and Exchange Commission (the “SEC”) was granted an injunction imposing an asset freeze against penny stock promoter, John Babikian. Babikian is charged with securities fraud.
The Court stated, “There is a high risk that, unless enjoined, John Babikian may commit the alleged fraudulent acts again, given his control of penny stock websites and his aptitude at using anonymous email accounts, alter-ego front companies, and mass email distribution systems.” The SEC’s original asset freeze against John Babikian was imposed on March 13, 2014. Among the assets subject to the SEC’s freeze are two homes in Los Angeles and a portion of the proceeds from the sale of an airplane.
The SEC charged John Babikian of illegally selling almost 1.4 million shares of America West Resources, Inc. after he recomended that investors purchase the shares – a practice known as scalping. According to the SEC, Babikian sent the buy recomendations to investors using two websites he controlled, AwesomePennyStocks.com and PennyStocksUniverse.com websites without disclosing his intention to sell 1.4 million shares under his control.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, by email at [email protected] or visit www.securitieslawyer101.com. This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. Please note that the prior results discussed herein do not guarantee similar outcomes.
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Brenda Hamilton, Securities Attorney
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