The Securities and Exchange Commission has come up with a tentative settlement to resolve charges against John Babikian, who is accused of operating a “pump-and-dump” scheme using penny-stock websites, Bloomberg reports.
The settlement calls for Babikian to pay $3.73 million and refrain from further promotion of penny stocks, according to court documents filed by the SEC in a Manhattan court on July 2. Babikian would also be barred from recommending the purchase of any U.S. publicly traded stock without also disclosing any plans to sell such stock within 14 days of the recommendation, Bloomberg reports. The monetary payout would include disgorgement of ill-gotten gains plus $1.7 million in civil penalties.
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