Final Judgment Entered Against Gregg Mulholland Posted by Brenda Hamilton

Gregg Mulholland SEC Action

On January 11, 2017, the U.S. District Court for the Eastern District of New York entered a final judgment against defendant Gregg R. Mulholland, a penny stock promoter charged in an SEC action with illegally selling more than 83 million penny stock shares that he allegedly held in the names of at least 10 different offshore entities.

The SEC’s complaint, filed on June 23, 2015, alleged that Mulholland surreptitiously accumulated, through at least ten offshore front companies, at least 84% of the issued and outstanding shares of Vision Plasma Systems Inc. Once Mulholland effectively controlled the company through this majority ownership, he liquidated his shares for proceeds of at least $21 million. No registration statement was filed or in effect covering Mulholland’s sales and no exemption from registration was available.

On May 9, 2016, Mr. Mulholland also pled guilty to money-laundering conspiracy charges in a parallel criminal case and is awaiting sentencing.

The judgment permanently enjoins Mulholland from violating, or causing violations of Sections 5(a) and (c) of the Securities Act of 1933 and also imposes conduct-based injunctions. The judgment also orders Mulholland to pay disgorgement and prejudgment interest of $24,659,355.57, which is to be deemed satisfied by the restitution order expected to be entered against Mulholland at sentencing in the parallel criminal case, conditioned upon the accuracy and completeness of his disclosures concerning his assets in that case.

Mulholland also consented to the entry of an SEC order, based on the court’s entry of judgment, which imposes industry and penny stock bars.

The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, the Internal Revenue Service, the Department of Homeland Security, and the Financial Industry Regulatory Authority.

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 or by email at [email protected].   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.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
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