SEC v. George Stubos; and Dori-Ann Stubos, No. LR-25978, Southern District of New York (Apr. 15, 2024) — Press Release
raw: George Stubos, et al.
George Stubos, et al., No. 1:22-cv-04674 (S.D.N.Y. Apr. 15, 2024)
summary
The SEC secured final judgments against George Stubos and relief defendant Dori-Ann Stubos for a microcap fraud scheme involving undisclosed company control and manipulative trading.
paragraph
The court ordered relief defendant Dori-Ann Stubos to pay over $2.3 million in disgorgement and prejudgment interest for receiving illicit proceeds from her husband's fraud. George Stubos was previously ordered to pay approximately $6.17 million in disgorgement and interest for orchestrating the deceptive microcap scheme. The SEC's charges included misleading investors and brokers to manipulate stock demand and hide his true ownership of several companies.
narrative
The SEC successfully litigated a case against George Stubos and his wife, Dori-Ann Stubos, regarding a deceptive microcap stock scheme. George Stubos, a Canadian resident, secretly gained control of several thinly traded companies and used stock promoters to create artificial demand. He misled investors, brokers, and transfer agents to hide his lack of registration and manipulate market activity for illicit profits. The SEC alleged that Stubos transferred these profits to Dori-Ann Stubos, including funds used to purchase a house in California. The court entered a final judgment against Dori-Ann Stubos, ordering her to pay more than $2.3 million in combined disgorgement and interest. George Stubos had previously entered a consent judgment requiring him to pay over $6.1 million in disgorgement and interest. This final judgment concludes the litigation in this matter.
Classified market-manipulation(confidence 95%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →
Parties
Securities and Exchange CommissionDori-Ann StubosGeorge Stubos
Keywords
stubosgeorge stubosdori-ann stubosgeorgestockgeorge stubos'dori-annfinal againstprejudgment interestfinalcompaniesstubos'stubos georgesecurities exchangeexchange commission
Exhibits & Attached Documents (2)
Extracted insights
Dollar amounts 6
- $5.37M $5,367,926 $1M–$10M
- $2.30M $2.3 million $1M–$10M
- $2.00M $2 Million $1M–$10M
- $1.77M $1,775,000 $1M–$10M
- $806K $806,108 $100K–$1M
- $533K $533,108 $100K–$1M
Entities 12
- person Dori-Ann Stubos
- person fraudulent microcap scheme
- person george stubos
- person Kathleen Shields
- organization microcap companies
- person microcap companies
- agency sec's case
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- person stock promoters
- court u.s. district court
- organization U.S. District Court
Triples 11
- Securities And Exchange Commission charged George Stubos
- George Stubos engaged in fraudulent microcap scheme
- Dori-Ann Stubos received illicit proceeds from George Stubos
- George Stubos gained control microcap companies
- George Stubos hired stock promoters
- George Stubos misled investors, brokers, and transfer agents
- George Stubos transferred $2.3 million to Dori-Ann Stubos
- U.S. District Court entered final judgment against Dori-Ann Stubos
- Dori-Ann Stubos ordered to pay $2.3 million in disgorgement and prejudgment interest
- George Stubos ordered to pay $5,367,926 in disgorgement and $806,108 in prejudgment interest
- Kathleen Shields handled SEC's case
PDF (from attached: judgment)
Text layers
Extracted body text (2,584c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25978 / April 15, 2024 Securities and Exchange Commission v. George Stubos, et al.; Civil Action No. 1:22-cv-04674 (S.D.N.Y filed June 6, 2022) Court Orders Relief Defendant in Fraudulent Microcap Scheme to Pay Over $2 Million On April 15, 2024, the U.S. District Court for the Southern District of New York entered a final judgment against relief defendant Dori-Ann Stubos, ordering her to pay more than $2.3 million in disgorgement and prejudgment interest. In June 2022, the SEC charged George Stubos for engaging in a deceptive scheme involving several microcap companies. Dori-Ann Stubos, George Stubos' wife, allegedly received illicit proceeds from George Stubos' fraudulent scheme for no legitimate purpose or consideration. The SEC's action alleged that Canadian resident George Stubos secretly gained control of several thinly traded microcap companies whose stock was publicly traded in the U.S. securities markets, hired stock promoters to create demand for his stock, and generated substantial illicit profits by selling the stock to unsuspecting investors. Stubos allegedly misled investors, brokers, and transfer agents (companies that maintain records of stock ownership) in order to convince these parties that his stock shares were eligible for trading in the public markets, when in fact he did not register his sales of those stock shares with the Commission and did not disclose accurate information about his control over the companies. The complaint alleged that Stubos also engaged in manipulative trading to create the appearance of active market trading and thus increased investor demand for the stock. According to the complaint, George Stubos transferred some of the profits from his illicit stock sales to Dori-Ann Stubos, including for the purchase of a house in California in the name of Dori-Ann Stubos. The court previously entered a final judgment against George Stubos by consent. George Stubos' judgment ordered him, among other relief, to pay disgorgement of $5,367,926 and prejudgment interest of $806,108. The final judgment against Dori-Ann Stubos, entered by consent, holds Dori-Ann Stubos jointly and severally liable with George Stubos for disgorgement of $1,775,000 in benefits gained as a result of George Stubos' conduct, together with $533,108 in prejudgment interest. This concludes the litigation in this matter. The SEC's case was handled by Kathleen Shields, Alfred Day, Jennifer Cardello, and Ryan Murphy of the Boston Regional Office. Final Judgment - Dori-Ann Stubos
OCR text (2,584c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25978 / April 15, 2024 Securities and Exchange Commission v. George Stubos, et al.; Civil Action No. 1:22-cv-04674 (S.D.N.Y filed June 6, 2022) Court Orders Relief Defendant in Fraudulent Microcap Scheme to Pay Over $2 Million On April 15, 2024, the U.S. District Court for the Southern District of New York entered a final judgment against relief defendant Dori-Ann Stubos, ordering her to pay more than $2.3 million in disgorgement and prejudgment interest. In June 2022, the SEC charged George Stubos for engaging in a deceptive scheme involving several microcap companies. Dori-Ann Stubos, George Stubos' wife, allegedly received illicit proceeds from George Stubos' fraudulent scheme for no legitimate purpose or consideration. The SEC's action alleged that Canadian resident George Stubos secretly gained control of several thinly traded microcap companies whose stock was publicly traded in the U.S. securities markets, hired stock promoters to create demand for his stock, and generated substantial illicit profits by selling the stock to unsuspecting investors. Stubos allegedly misled investors, brokers, and transfer agents (companies that maintain records of stock ownership) in order to convince these parties that his stock shares were eligible for trading in the public markets, when in fact he did not register his sales of those stock shares with the Commission and did not disclose accurate information about his control over the companies. The complaint alleged that Stubos also engaged in manipulative trading to create the appearance of active market trading and thus increased investor demand for the stock. According to the complaint, George Stubos transferred some of the profits from his illicit stock sales to Dori-Ann Stubos, including for the purchase of a house in California in the name of Dori-Ann Stubos. The court previously entered a final judgment against George Stubos by consent. George Stubos' judgment ordered him, among other relief, to pay disgorgement of $5,367,926 and prejudgment interest of $806,108. The final judgment against Dori-Ann Stubos, entered by consent, holds Dori-Ann Stubos jointly and severally liable with George Stubos for disgorgement of $1,775,000 in benefits gained as a result of George Stubos' conduct, together with $533,108 in prejudgment interest. This concludes the litigation in this matter. The SEC's case was handled by Kathleen Shields, Alfred Day, Jennifer Cardello, and Ryan Murphy of the Boston Regional Office. Final Judgment - Dori-Ann Stubos