2023-05-03 sec-litreleases litigation_release 65 KB 2,437 chars

SEC v. GPL Ventures LLC; GPL Management LLC; Alexander J. Dillon; and Cosmin I. Panait, No. LR-25706, Southern District of New York (May 3, 2023) — Press Release

raw: GPL Ventures LLC, GPL Management LLC, Alexander J. Dillon, and Cosmin I. Panait

GPL Ventures LLC, GPL Management LLC, Alexander J. Dillon, and Cosmin I. Panait, No. 1:21-cv-06814 (S.D.N.Y. May 3, 2023)

Caption
Securities and Exchange Commission v. GPL Ventures LLC
Source PDF JSON
summary

Alexander J. Dillon, Cosmin I. Panait, and their entities GPL Ventures and GPL Management agreed to final judgments for acting as unregistered dealers and orchestrating a penny stock fraud.

paragraph

The defendants were charged with acting as unregistered dealers and orchestrating a fraudulent scheme involving HempAmericana, Inc. between 2017 and 2021. To settle the case, the defendants consented to pay over $39 million in disgorgement, interest, and civil penalties. The court also ordered the cancellation of $11 million in convertible notes and imposed five-year penny stock bars on Dillon and Panait.

narrative

The SEC obtained final judgments against Alexander J. Dillon, Cosmin I. Panait, and their entities, GPL Ventures LLC and GPL Management LLC, for acting as unregistered dealers and orchestrating a penny stock fraud scheme. Between July 2017 and August 2021, the defendants allegedly acquired microcap stocks at a discount and sold them to the public. Specifically, they were charged with arranging for HempAmericana, Inc. to use stock proceeds to fund promotions while the defendants sold their own shares. To resolve the matter, the defendants consented to pay approximately $29.7 million in disgorgement, $2.5 million in prejudgment interest, and $7 million in civil penalties. The settlement also requires the surrender of $11 million in convertible notes and imposes five-year penny stock bars against Dillon and Panait. Finally, the defendants are permanently enjoined from violating federal securities laws.

Enriched metadata

Scheme
pump-and-dump (100%)
Court
Southern District of New York
Case No.
1:21-cv-06814
Outcome
settled
Disgorgement
$2,489,799
Victim loss
$39,000,000
Entity
GPL Ventures LLC
Classified pump-and-dump(confidence 100%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Statutes
Section 17(a) of the Securities ActSections 10(b) and 15(a)(1) of the Securities Exchange ActSections 10(b) and 15(a)(1) of the Securities Exchange ActSections 10(b) and 15(a)(1) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionGPL Ventures LLCSalvador E. RosilloLawrence B. AdamsGPL Management LLCHempAmericana, Inc.Cosmin I. PanaitCaroline AdamsSeaside Advisors, LLCAlexander J. Dillon
Keywords
gplllcalexander dillondillon cosmincosmin panaitfinal judgmentssecuritiessecurities exchangepenny stockdillonpanaitstockventuresmanagementalexander

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 5
  • $39.00M $39 million $10M–$100M
  • $29.68M $29,681,569 $10M–$100M
  • $11.00M $11 million $10M–$100M
  • $3.50M $3,500,000 $1M–$10M
  • $2.49M $2,489,799 $1M–$10M
Entities 2
  • person final judgments
  • agency Securities and Exchange Commission
Triples 12
  • Securities And Exchange Commission charged Alexander J. Dillon, Cosmin I. Panait, GPL Ventures LLC, and GPL Management LLC with acting as unregistered dealers and engaging in a penny stock fraud scheme
  • Defendants consented to pay more than $39 million in civil penalties and disgorgement
  • SEC alleged that between July 2017 and August 2021, the defendants acted as unregistered securities dealers by privately acquiring microcap stocks at a discount and publicly selling them
  • Defendants orchestrated a fraudulent scheme involving HempAmericana, Inc. to use stock proceeds to fund promotions while selling their shares
  • Defendants consented to permanent injunctions against violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934, and Rule 10b-5
  • Final Judgments order payment of $29,681,569 in disgorgement and $2,489,799 in prejudgment interest
  • Final Judgments direct Dillon and Panait to pay civil money penalties of $3,500,000 each
  • Final Judgments direct defendants to surrender for cancellation all remaining unconverted convertible notes with a face value of approximately $11 million
  • Final Judgments impose five-year penny stock bars against defendants
  • SEC conducted investigation by Brenda Chang, John C. Lehmann, Peter a. Lamore, and Adam S. Grace
  • SEC is handling litigation by Paul Gizzi, Brenda Chang, and John C. Lehmann
  • Case is being supervised by Thomas P. Smith, Jr.
PDF (from attached: judgment)
SEC v. GPL · Source
Text layers
Extracted body text (2,437c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25706 / May 3, 2023 Securities and Exchange Commission v. GPL Ventures LLC, GPL Management LLC, Alexander J. Dillon, and Cosmin I. Panait, No. 1:21-cv-06814 (S.D.N.Y. filed Aug. 13, 2021) SEC Obtains Final Judgments Against Firm and Its Principals for Acting as Unregistered Dealers and Engaging in a Penny Stock Fraud Scheme On May 2, 2023, the U.S. District Court for the Southern District of New York entered final judgments against Alexander J. Dillon, Cosmin I. Panait, and their corporate entities GPL Ventures LLC and GPL Management LLC, whom the SEC charged with acting as unregistered dealers and engaging in a penny stock fraud scheme. To settle the case, the defendants consented to pay more than $39 million in civil penalties and disgorgement. The SEC's complaint, filed on August 13, 2021, alleged that between July 2017 and August 2021, the defendants acted as unregistered securities dealers by privately acquiring numerous microcap stocks at a discount and subsequently publicly selling the securities to the investing public. In addition, the complaint charged the defendants with orchestrating a fraudulent scheme in which they acquired shares in microcap issuer HempAmericana, Inc. and secretly arranged for HempAmericana to use a percentage of the stock proceeds to fund stock promotions while the defendants sold their shares into the market. Without admitting or denying the allegations in the SEC's complaint, the defendants consented to the entry of final judgments permanently enjoining them from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The final judgments also order the defendants to pay $29,681,569 in disgorgement and $2,489,799 in prejudgment interest, orders Dillon and Panait to pay civil money penalties of $3,500,000 each, directs the defendants to surrender for cancelation all remaining unconverted convertible notes still held, with a face value of approximately $11 million, and imposes five-year penny stock bars against defendants. The SEC's investigation was conducted by Brenda Chang, John C. Lehmann, Peter A. Lamore, and Adam S. Grace, and the litigation, which remains ongoing against other defendants, is being handled by Paul Gizzi, Ms. Chang, and Mr. Lehmann. The case is being supervised by Thomas P. Smith, Jr.
OCR text (2,437c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25706 / May 3, 2023 Securities and Exchange Commission v. GPL Ventures LLC, GPL Management LLC, Alexander J. Dillon, and Cosmin I. Panait, No. 1:21-cv-06814 (S.D.N.Y. filed Aug. 13, 2021) SEC Obtains Final Judgments Against Firm and Its Principals for Acting as Unregistered Dealers and Engaging in a Penny Stock Fraud Scheme On May 2, 2023, the U.S. District Court for the Southern District of New York entered final judgments against Alexander J. Dillon, Cosmin I. Panait, and their corporate entities GPL Ventures LLC and GPL Management LLC, whom the SEC charged with acting as unregistered dealers and engaging in a penny stock fraud scheme. To settle the case, the defendants consented to pay more than $39 million in civil penalties and disgorgement. The SEC's complaint, filed on August 13, 2021, alleged that between July 2017 and August 2021, the defendants acted as unregistered securities dealers by privately acquiring numerous microcap stocks at a discount and subsequently publicly selling the securities to the investing public. In addition, the complaint charged the defendants with orchestrating a fraudulent scheme in which they acquired shares in microcap issuer HempAmericana, Inc. and secretly arranged for HempAmericana to use a percentage of the stock proceeds to fund stock promotions while the defendants sold their shares into the market. Without admitting or denying the allegations in the SEC's complaint, the defendants consented to the entry of final judgments permanently enjoining them from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 15(a)(1) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. The final judgments also order the defendants to pay $29,681,569 in disgorgement and $2,489,799 in prejudgment interest, orders Dillon and Panait to pay civil money penalties of $3,500,000 each, directs the defendants to surrender for cancelation all remaining unconverted convertible notes still held, with a face value of approximately $11 million, and imposes five-year penny stock bars against defendants. The SEC's investigation was conducted by Brenda Chang, John C. Lehmann, Peter A. Lamore, and Adam S. Grace, and the litigation, which remains ongoing against other defendants, is being handled by Paul Gizzi, Ms. Chang, and Mr. Lehmann. The case is being supervised by Thomas P. Smith, Jr.

Related documents (1)