Court Enters Final Judgment In Penny Stock Case

 

Penny Stock ManipulationThe Securities and Exchange Commission (SEC) announced that the Court entered a final judgment against Defendant Chad Smanjak on November 23, 2015 in SEC v. Ruettiger, et al., Civil Action No. 1:11-CV-02011, a penny stock manipulation case the SEC filed on December 16, 2011. The SEC’s complaint alleged that Smanjak engaged in a market manipulation scheme involving the stock of Rudy Nutrition, which generated more than $11 million in illicit profits.

The court entered a consent final judgment against Smanjak that permanently enjoins him from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder; bars him from participating in any offering of a penny stock; and orders disgorgement of $2,010,286 and prejudgment interest of $454,963, which was satisfied by Smanjak’s consent to forfeiture in related criminal proceedings. In those proceedings, Smanjak has pleaded guilty to conspiracy to commit securities fraud and is awaiting sentencing. See U.S. v. Smanjak, SA CR No. 10-215 (C.D. Cal.).

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 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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