SEC v. Drew Morgan Ciccarelli, No. LR-26087, District of Massachusetts (Aug. 30, 2024) — Press Release
raw: Drew Morgan Ciccarelli
Drew Morgan Ciccarelli, No. 1:20-cv-11789 (Aug. 30, 2024)
summary
Drew Ciccarelli obtained a final judgment for his role in a Rarus Technologies pump-and-dump scheme, resulting in a penny stock bar and a prison sentence.
paragraph
Drew Ciccarelli was charged with orchestrating a pump-and-dump scheme for Rarus Technologies Inc. using $150,000 in undisclosed funds. He faced civil penalties including $35,000 in disgorgement and a penny stock bar, alongside a criminal conviction for conspiracy to commit securities fraud and money laundering. His total criminal penalties included a one-year and one-day prison sentence and a $500,000 forfeiture.
narrative
The SEC obtained a final judgment against Drew Ciccarelli for his role in a pump-and-dump scheme involving Rarus Technologies Inc. Ciccarelli was paid $150,000 by a secret shareholder group to promote the stock, using intermediary entities to conceal the group's sponsorship. To resolve the civil action, Ciccarelli consented to a penny stock bar and a disgorgement of $35,000 plus interest, which was satisfied via a parallel criminal forfeiture. In a concurrent criminal proceeding, Ciccarelli pleaded guilty to conspiracy to commit securities fraud and money laundering. He was sentenced to one year and a day in prison, two years of probation, and a $500,000 forfeiture. This dual resolution addresses both the fraudulent promotion and the underlying money laundering activities.
Classified pump-and-dump(confidence 100%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Statutes
Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities ActSections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities ActSections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities ActSections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities ActSections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities ActSection 10(b) of the Securities Exchange Act
Parties
Securities and Exchange CommissionDrew Ciccarelli
Keywords
ciccarellisecuritiessecurities exchangedrew morganmorgan ciccarelliexchange commissionshareholder groupdrewexchangefinalshareholderfinal againstantifraud provisionsparallel criminalmorgan
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 4
- $500K $500,000 $100K–$1M
- $150K $150,000 $100K–$1M
- $35K $35,000 $10K–$100K
- $13K $13,364 $10K–$100K
Entities 8
- person drew ciccarelli
- person final judgment
- agency marty healey and j. lauchlan wash of the sec's boston regional office
- scheme_term one count of conspiracy to commit securities fraud and money laundering
- person penny stock bar
- agency sec's litigation
- agency Securities and Exchange Commission
- agency united states attorney's office for the district of massachusetts
Triples 10
- Securities And Exchange Commission announced U.S. District Court for the District of Massachusetts entered a final judgment against defendant Drew Ciccarelli on August 21, 2024
- Securities And Exchange Commission alleged Drew Ciccarelli was paid $150,000 by a shareholder group that secretly controlled Rarus to promote and increase demand for Rarus stock
- Drew Ciccarelli used intermediary entities he controlled to pass funds from the shareholder group to the promoters
- Drew Ciccarelli consented to entry of a final judgment enjoining him from violating securities registration and antifraud provisions of Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c)
- Drew Ciccarelli consented to penny stock bar
- Final Judgment orders Drew Ciccarelli to pay disgorgement of $35,000 plus prejudgment interest of $13,364.41
- United States Attorney's Office for the District of Massachusetts entered Order of Forfeiture that satisfied disgorgement and interest
- Drew Ciccarelli pleaded guilty to one count of conspiracy to commit securities fraud and money laundering
- Court ordered Drew Ciccarelli to incarceration for a term of one year and a day and two years' probation and forfeiture of $500,000
- SEC's litigation was led by Marty Healey and J. Lauchlan Wash of the SEC's Boston Regional Office
PDF (from attached: complaint)
Text layers
Extracted body text (2,275c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26087 / August 30, 2024 Securities and Exchange Commission v. Drew Morgan Ciccarelli, No. 1:20-cv-11789 (D. Mass. filed Sept. 30, 2020) SEC Obtains Final Judgment Against Defendant in a Microcap Fraud Scheme The Securities and Exchange Commission announced that the U.S. District Court for the District of Massachusetts entered a final judgment against defendant Drew Ciccarelli on August 21, 2024, in a previously filed action charging him for his role in a pump-and-dump scheme in the stock of Rarus Technologies Inc, a former New York-based microcap company. The Commission's complaint, filed in September 2020, alleged that Ciccarelli was paid $150,000 by a shareholder group that secretly controlled Rarus to promote and increase demand for Rarus stock in order for the shareholder group to sell its shares at inflated prices. According to the complaint, Ciccarelli used intermediary entities he controlled to pass funds from the shareholder group to the promoters thereby concealing the shareholder group's sponsorship of the promotional campaign. Ciccarelli, without admitting or denying the allegations in the SEC's complaint, consented to the entry of a final judgment enjoining him from violating the securities registration and antifraud provisions of Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act of 1933 and the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) thereunder. In addition, Ciccarelli consented to a penny stock bar. The final judgment also orders Ciccarelli to pay disgorgement of $35,000 plus prejudgment interest of $13,364.41 that was deemed satisfied by an Order of Forfeiture entered in a parallel criminal action filed by the United States Attorney's Office for the District of Massachusetts. In the parallel criminal proceeding arising from the same conduct, Ciccarelli pleaded guilty to one count of conspiracy to commit securities fraud and money laundering and was ordered on June 25, 2024, to incarceration for a term of one year and a day and two years' probation and forfeiture of $500,000. The SEC's litigation was led by Marty Healey and J. Lauchlan Wash of the SEC's Boston Regional Office.
OCR text (2,275c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26087 / August 30, 2024 Securities and Exchange Commission v. Drew Morgan Ciccarelli, No. 1:20-cv-11789 (D. Mass. filed Sept. 30, 2020) SEC Obtains Final Judgment Against Defendant in a Microcap Fraud Scheme The Securities and Exchange Commission announced that the U.S. District Court for the District of Massachusetts entered a final judgment against defendant Drew Ciccarelli on August 21, 2024, in a previously filed action charging him for his role in a pump-and-dump scheme in the stock of Rarus Technologies Inc, a former New York-based microcap company. The Commission's complaint, filed in September 2020, alleged that Ciccarelli was paid $150,000 by a shareholder group that secretly controlled Rarus to promote and increase demand for Rarus stock in order for the shareholder group to sell its shares at inflated prices. According to the complaint, Ciccarelli used intermediary entities he controlled to pass funds from the shareholder group to the promoters thereby concealing the shareholder group's sponsorship of the promotional campaign. Ciccarelli, without admitting or denying the allegations in the SEC's complaint, consented to the entry of a final judgment enjoining him from violating the securities registration and antifraud provisions of Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act of 1933 and the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and 10b-5(c) thereunder. In addition, Ciccarelli consented to a penny stock bar. The final judgment also orders Ciccarelli to pay disgorgement of $35,000 plus prejudgment interest of $13,364.41 that was deemed satisfied by an Order of Forfeiture entered in a parallel criminal action filed by the United States Attorney's Office for the District of Massachusetts. In the parallel criminal proceeding arising from the same conduct, Ciccarelli pleaded guilty to one count of conspiracy to commit securities fraud and money laundering and was ordered on June 25, 2024, to incarceration for a term of one year and a day and two years' probation and forfeiture of $500,000. The SEC's litigation was led by Marty Healey and J. Lauchlan Wash of the SEC's Boston Regional Office.