2023-11-29 sec-litreleases litigation_release 66 KB 2,425 chars

SEC v. Andrew DeFrancesco; Marlio Mauricio Diaz Cardona; Carlos Felipe Rezk; Nicola Faukovic; and Catherine DeFrancesco, No. LR-25904, Southern District of New York (Nov. 29, 2023) — Press Release

raw: Andrew DeFrancesco, Marlio Mauricio Diaz Cardona, Carlos Felipe Rezk, Nicola Faukovic, and Catherine DeFrancesco

Andrew DeFrancesco, Marlio Mauricio Diaz Cardona, Carlos Felipe Rezk, Nicola Faukovic, and Catherine DeFrancesco, No. LR-25904 (S.D.N.Y. Nov. 29, 2023)

Caption
SEC v. Andrew DeFrancesco, et al.
Source PDF JSON
summary

Former Cool Holdings officers Marlio Mauricio Diaz Cardona and Carlos Felipe Rezk received final judgments for their roles in a fraudulent SEC filing and pump-and-dump scheme.

paragraph

The SEC obtained final consent judgments against Marlio Mauricio Diaz Cardona and Carlos Felipe Rezk for making false statements and omitting material information in Cool Holdings, Inc. filings. The defendants were involved in a scheme that included a fraudulent pump-and-dump of company stock between 2018 and 2019. Both individuals were ordered to pay civil money penalties of $223,229 and were barred from serving as officers or directors of public companies.

narrative

The U.S. Securities and Exchange Commission has secured final judgments against Marlio Mauricio Diaz Cardona and Carlos Felipe Rezk, former officers and directors of Cool Holdings, Inc. The defendants were implicated in a scheme involving false statements and the omission of material information regarding critical business relationships in SEC filings from March 2018 through June 2019. Additionally, Diaz and Rezk assisted in conducting a fraudulent pump-and-dump of Cool Holdings’ stock during the second half of 2018. The final consent judgments, entered on November 21, 2023, permanently enjoin the defendants from violating the Securities Act of 1933 and the Exchange Act of 1934. Both parties were ordered to pay a civil money penalty of $223,229 each. Furthermore, the court barred both individuals from serving as officers or directors of any public company. This resolution concludes the litigation originally filed in January 2023.

Enriched metadata

Scheme
pump-and-dump (95%)
Court
Southern District of New York
Civil penalty
$223,229
Entity
Andrew DeFrancesco, Marlio Mauricio Diaz Cardona, Carlos Felipe Rezk, Nicola Faukovic, and Catherine DeFrancesco
Classified pump-and-dump(confidence 95%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Statutes
Section 17(a) of the Securities ActRule 10b-5
Parties
Securities and Exchange CommissionAndrew DeFrancescoMarlio Mauricio Diaz CardonaCarlos Felipe RezkNicola FaukovicCatherine DeFrancesco
Keywords
cool holdingsdiazrezkmarlio mauriciomauricio diazdiaz cardonacardona carloscarlos felipefelipe rezkdefrancescocoolholdingsandrew defrancescofinal judgmentsdiaz rezk

Exhibits & Attached Documents (3)

Extracted insights

Dollar amounts 1
  • $223K $223,229 $100K–$1M
Entities 11
  • person andrew defrancesco
  • person carlos felipe rezk
  • company cool holdings
  • company each from serving as an officer or director of a public company
  • person final judgments
  • scheme_term in conducting a pump-and-dump of cool holdings' stock
  • agency in sec filings
  • agency in sec filings about a critical business relationship
  • person marlio mauricio diaz cardona
  • agency Securities and Exchange Commission
  • court u.s. district court for the southern district of new york
Triples 15
  • U.S. Securities And Exchange Commission obtained final judgments Marlio Mauricio Diaz Cardona and Carlos Felipe Rezk
  • Marlio Mauricio Diaz Cardona made false statements in SEC filings about a critical business relationship
  • Marlio Mauricio Diaz Cardona omitted material information in SEC filings
  • Carlos Felipe Rezk made false statements in SEC filings
  • Carlos Felipe Rezk omitted material information in SEC filings
  • Andrew DeFrancesco conducted a pump-and-dump of Cool Holdings' stock
  • Marlio Mauricio Diaz Cardona assisted Andrew DeFrancesco in conducting a pump-and-dump of Cool Holdings' stock
  • Carlos Felipe Rezk assisted Andrew DeFrancesco in conducting a pump-and-dump of Cool Holdings' stock
  • U.S. District Court For The Southern District Of New York entered final consent judgments against Marlio Mauricio Diaz Cardona and Carlos Felipe Rezk
  • Marlio Mauricio Diaz Cardona consented to being permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder
  • Carlos Felipe Rezk consented to being permanently enjoined from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder
  • Final Judgments ordered each to pay a civil money penalty of $223,229
  • Final Judgments barred each from serving as an officer or director of a public company
  • SEC filed complaint on January 6, 2023
  • Cool Holdings filed false and misleading registration statements signed by Diaz, Rezk, and Andrew DeFrancesco
PDF (from attached: complaint)
SEC v. ANDREW DEFRANCESCO · Source
Text layers
Extracted body text (2,425c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25904 / November 29, 2023 Securities and Exchange Commission v. Andrew DeFrancesco, Marlio Mauricio Diaz Cardona, Carlos Felipe Rezk, Nicola Faukovic, and Catherine DeFrancesco, No. 1:23-civ-00131 (S.D.N.Y. filed Jan. 6, 2023) SEC Obtains Final Judgments Against Former Public Company Officers and Directors, Concluding the Litigation in Fraudulent Filings and Pump-And-Dump Scheme On November 21, 2023, the U.S. District Court for the Southern District of New York entered final consent judgments against Marlio Mauricio Diaz Cardona and Carlos Felipe Rezk, former officers and directors of Cool Holdings, Inc. (“Cool Holdings”), for their roles in a scheme involving false statements and omissions of material information in filings with the Commission, as well as a fraudulent pump-and-dump of Cool Holdings’ stock. Entry of the final judgments against Diaz and Rezk concludes this litigation. According to the SEC’s complaint, filed on January 6, 2023, from March 2018 through June 2019, Cool Holdings made false statements and omitted material information in SEC filings, including about a critical business relationship, in each of its quarterly and annual SEC filings, all signed by Diaz, Cool Holdings’ CEO. Cool Holdings also filed false and misleading registration statements that were all signed by Diaz, Rezk, Cool Holdings’ chief marketing officer, and Andrew DeFrancesco, Cool Holdings’ Chairman of the Board. In addition, in the second half of 2018, Diaz and Rezk assisted DeFrancesco in conducting a pump-and-dump of Cool Holdings’ stock. Both Diaz and Rezk consented to the entry of final judgments permanently enjoining them from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgments also ordered each to pay a civil money penalty of $223,229 and barred each from serving as an officer or director of a public company. The SEC's litigation was conducted by David Stoelting, Mao Yu Lin, and Melissa Coppola of the New York Regional Office; Jason Schall and Danielle Srour of the Home Office; and Katherine Bromberg of the Boston Regional Office. For further information, see Litigation Release No. 25610, January 6, 2023, and Litigation Release No. 25771, July 7, 2023 SEC Complaint Judgment - Marlio Mauricio Diaz Cardona Judgment - Carlos Felipe Rezk
OCR text (2,425c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25904 / November 29, 2023 Securities and Exchange Commission v. Andrew DeFrancesco, Marlio Mauricio Diaz Cardona, Carlos Felipe Rezk, Nicola Faukovic, and Catherine DeFrancesco, No. 1:23-civ-00131 (S.D.N.Y. filed Jan. 6, 2023) SEC Obtains Final Judgments Against Former Public Company Officers and Directors, Concluding the Litigation in Fraudulent Filings and Pump-And-Dump Scheme On November 21, 2023, the U.S. District Court for the Southern District of New York entered final consent judgments against Marlio Mauricio Diaz Cardona and Carlos Felipe Rezk, former officers and directors of Cool Holdings, Inc. (“Cool Holdings”), for their roles in a scheme involving false statements and omissions of material information in filings with the Commission, as well as a fraudulent pump-and-dump of Cool Holdings’ stock. Entry of the final judgments against Diaz and Rezk concludes this litigation. According to the SEC’s complaint, filed on January 6, 2023, from March 2018 through June 2019, Cool Holdings made false statements and omitted material information in SEC filings, including about a critical business relationship, in each of its quarterly and annual SEC filings, all signed by Diaz, Cool Holdings’ CEO. Cool Holdings also filed false and misleading registration statements that were all signed by Diaz, Rezk, Cool Holdings’ chief marketing officer, and Andrew DeFrancesco, Cool Holdings’ Chairman of the Board. In addition, in the second half of 2018, Diaz and Rezk assisted DeFrancesco in conducting a pump-and-dump of Cool Holdings’ stock. Both Diaz and Rezk consented to the entry of final judgments permanently enjoining them from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. The final judgments also ordered each to pay a civil money penalty of $223,229 and barred each from serving as an officer or director of a public company. The SEC's litigation was conducted by David Stoelting, Mao Yu Lin, and Melissa Coppola of the New York Regional Office; Jason Schall and Danielle Srour of the Home Office; and Katherine Bromberg of the Boston Regional Office. For further information, see Litigation Release No. 25610, January 6, 2023, and Litigation Release No. 25771, July 7, 2023 SEC Complaint Judgment - Marlio Mauricio Diaz Cardona Judgment - Carlos Felipe Rezk

Related documents (3)