SEC v. George Iakovou; Vika Ventures LLC; and Penelope Zbravos, No. LR-25808, Middle District of Georgia (Aug. 11, 2023) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25808 / August 11, 2023 Securities and Exchange Commission v. George Iakovou, Vika Ventures LLC, and Penelope Zbravos, Civ. Action, o. 4:22-cv-00194-CDL (M.D. Ga. filed Dec. 7, 2022) SEC Obtains Nearly Nine Million Dollar Final Judgment Against Vika Ventures LLC On August 9, 2023, the Securities and Exchange Commission obtained a final judgment against defendant Vika Ventures LLC ("Vika"), which the SEC previously charged with fraudulently offering and selling securities of private companies that might hold an initial public offering ("IPO"). Vika in fact never owned or acquired the pre-IPO securities. The SEC's complaint, filed on December 7, 2022 in the United States District Court for the Middle District of Georgia, alleged that Vika and its co-founder George Iakovou held Vika out as a purported venture capital firm while using Vika to engage in the pre-IPO scheme. Vika and Iakovou thereby defrauded at least 46 individual investors of more than $6 million. The complaint also alleged that Penelope Zbravos negligently performed tasks at Vika that perpetuated the scheme. On June 22, 2023, the district court entered a consent judgment as to Zbravos. The judgment enjoins her from further violations of Section 17(a)(3) of the Securities Act of 1933 and provides that, upon subsequent motion of the Commission, the court will determine any monetary relief against her. On June 30, 2023, the district court entered Amended Default Judgments against Iakovou and Vika. Those judgments enjoin each of them from further violations of the antifraud provisions of the Securities Act and the Securities Exchange Act of 1934, imposing an additional conduct-based injunction and an officer and director bar against Iakovou, and providing that, upon subsequent motions of the Commission, the court would determine any monetary relief against those defendants. On August 7, 2023, the Commission moved the district court for a penalty against Vika. On August 9, 2023, the district court granted the motion and entered a Final Judgment against Vika, enjoining it from violating Section 17(a) of the Securities Act; Section 10(b) of the Exchange Act; and Exchange Act Rules 10b-5(a), (b), and (c) and ordering Vika to pay a civil money penalty of $8,929,120. The SEC's investigation was conducted by Allison M. Rochford and Michelle I. Bougdanos and supervised by David Frohlich and Carolyn Welshhans. The litigation is led by James Carlson.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25808 / August 11, 2023 Securities and Exchange Commission v. George Iakovou, Vika Ventures LLC, and Penelope Zbravos, Civ. Action, o. 4:22-cv-00194-CDL (M.D. Ga. filed Dec. 7, 2022) SEC Obtains Nearly Nine Million Dollar Final Judgment Against Vika Ventures LLC On August 9, 2023, the Securities and Exchange Commission obtained a final judgment against defendant Vika Ventures LLC ("Vika"), which the SEC previously charged with fraudulently offering and selling securities of private companies that might hold an initial public offering ("IPO"). Vika in fact never owned or acquired the pre-IPO securities. The SEC's complaint, filed on December 7, 2022 in the United States District Court for the Middle District of Georgia, alleged that Vika and its co-founder George Iakovou held Vika out as a purported venture capital firm while using Vika to engage in the pre-IPO scheme. Vika and Iakovou thereby defrauded at least 46 individual investors of more than $6 million. The complaint also alleged that Penelope Zbravos negligently performed tasks at Vika that perpetuated the scheme. On June 22, 2023, the district court entered a consent judgment as to Zbravos. The judgment enjoins her from further violations of Section 17(a)(3) of the Securities Act of 1933 and provides that, upon subsequent motion of the Commission, the court will determine any monetary relief against her. On June 30, 2023, the district court entered Amended Default Judgments against Iakovou and Vika. Those judgments enjoin each of them from further violations of the antifraud provisions of the Securities Act and the Securities Exchange Act of 1934, imposing an additional conduct-based injunction and an officer and director bar against Iakovou, and providing that, upon subsequent motions of the Commission, the court would determine any monetary relief against those defendants. On August 7, 2023, the Commission moved the district court for a penalty against Vika. On August 9, 2023, the district court granted the motion and entered a Final Judgment against Vika, enjoining it from violating Section 17(a) of the Securities Act; Section 10(b) of the Exchange Act; and Exchange Act Rules 10b-5(a), (b), and (c) and ordering Vika to pay a civil money penalty of $8,929,120. The SEC's investigation was conducted by Allison M. Rochford and Michelle I. Bougdanos and supervised by David Frohlich and Carolyn Welshhans. The litigation is led by James Carlson.