L.A. Court Enters Judgment Against Sun Valley Man in Pump-And-Dump Scheme
L.A. Court Enters Judgment Against Sun Valley Man in Pump-And-Dump Scheme
by Contributing Editor
A federal judge in Los Angeles has entered a final judgment against a Sun Valley man for his role in a pump-and-dump scheme in the stock of a Southland beverage and cannabis company, the U.S. Securities and Exchange Commission announced Wednesday.
The SEC previously charged David N. Osegueda and three others with deceiving a brokerage firm into allowing Osegueda and two co-defendants to deposit their Green Cures & Botanical Distribution stock into their accounts in advance of pumping up the company’s stock price through a promotional campaign, regulators said.
Osegueda and two other defendants then dumped their shares on unsuspecting investors, generating $1.9 million in illicit proceeds, according to the SEC.
On Monday, a federal judge entered a judgment against Osegueda, permanently enjoining him from violating the anti-fraud provisions of federal securities law. The judgment further orders him to pay $932,000 in disgorgement and prejudgment interest, and a civil penalty of $835,000. Osegueda is also prohibited from participating in the offering of a penny stock, and a 10-year officer and director bar was also imposed against him.
Without admitting or denying the allegations of the complaint, Osegueda consented to the judgment, according to the SEC.
The litigation is pending against the remaining defendants: Ishmail Calvin Ross of Canoga Park, Zachary R. Logan of La Jolla and Jessica Snyder of Avondale, Arizona, according to the SEC.
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All credit goes to Contributing Editor
Originally published on https://mynewsla.com
