The Securities and Exchange Commission (SEC) has announced that a final judgment has been reached in connection with a significant fraud case. The involved individual, identified as James B. Panther, Jr., participated in a fraudulent scheme that manipulated the share prices of a microcap company. This scheme allowed for the secret control and inflation of share prices, which ultimately resulted in substantial profits at the expense of unsuspecting investors.
The resolution of this case concludes all claims linked to an SEC complaint originally filed on May 15, 2018. It was alleged that another individual, Francisco Abellan Villena, orchestrated the scheme. With the assistance of Panther and two other co-defendants, Abellan concealed his ownership and sales of shares belonging to Biozoom, Inc. Various deceptive practices, such as using fraudulent purchase agreements and a network of nominees, were employed to disguise their activities.
Furthermore, Panther was implicated in facilitating Abellan’s manipulative trading strategies and executing an extensive promotional campaign aimed at artificially inflating the stock price of Biozoom. The culmination of these illegal actions resulted in the sale of Biozoom stock yielding over $33 million in illegitimate proceeds.
In light of these findings, the Court granted the SEC’s motion for summary judgment. As a result of this judgment, Panther has been permanently barred from violating antifraud and registration provisions of federal securities laws. Additionally, he has been ordered to pay a civil penalty of $100,000 and is prohibited from participating in penny stock offerings for a ten-year period.
This case is part of a broader series of actions taken by the SEC against the involved defendants. On November 27, 2019, a default judgment was issued against Faiyaz Dean, a Canadian lawyer, which included a $160,000 civil penalty. Similarly, on September 11, 2020, a default judgment was entered against Abellan, imposing a permanent injunction against him for the same violations, along with a hefty civil penalty of $15 million.
The SEC also secured a final judgment against another co-defendant, Guillermo Ciupak, enforcing similar prohibitions against him regarding violations of federal securities laws.
Prior to these judgments, in 2013, the SEC successfully obtained a court order that froze proceeds linked to the unlawful sales of Biozoom shares. This led to a default judgment being established, resulting in the creation of a fair fund. This fund has successfully redistributed over $16 million to investors who were harmed by the scheme.
The SEC has a track record of pursuing justice in cases of market manipulation, as exemplified by its previous actions against Abellan tied to a different fraud scheme. This consistent enforcement underscores the agency’s commitment to maintaining fair and transparent markets and holding accountable those who attempt to exploit them for personal gain.
By achieving these outcomes, the SEC aims to protect the integrity of the financial markets and ensure that investors are shielded from fraudulent activities that undermine their trust and financial security.