2019-08-12 sec-litreleases litigation_release 65 KB 2,053 chars

SEC v. Mark E. Burns, No. LR-24557, Southern District of New York (Aug. 12, 2019) — Press Release

raw: Mark E. Burns

Mark E. Burns, No. 1:18-cv-06257 (S.D.N.Y. Aug. 12, 2019)

Caption
Securities and Exchange Commission v. Burns
Source PDF JSON
summary

Mark E. Burns participated in a scheme to manipulate Fitbit, Inc. securities through false regulatory filings, resulting in a profit of approximately $13,000, and was ordered to pay $73,886 in disgorgement, prejudgment interest, and civil penalties.

paragraph

Mark E. Burns was involved in a 2016 stock manipulation scheme with co-conspirator Robert W. Murray, filing a fake tender offer for Fitbit, Inc. that caused the stock price to temporarily spike. Burns profited approximately $13,000 by selling his call options. He was ordered to pay $13,886 in disgorgement and prejudgment interest, plus a $60,000 civil penalty.

narrative

The U.S. Securities and Exchange Commission (SEC) obtained a final judgment against Mark E. Burns for his participation in a scheme to manipulate the price of Fitbit, Inc. securities through false regulatory filings. Burns and his co-conspirator, Robert W. Murray, filed a fake tender offer on the SEC's EDGAR system, claiming a premium acquisition offer, which caused Fitbit's stock price to temporarily spike. Burns purchased Fitbit call options just minutes before filing the fake tender offer and sold all of his options for a profit of approximately $13,000. Without admitting or denying the allegations, Burns consented to a permanent injunction barring violations of Sections 17(a), 10(b), and 14(e) of federal securities laws, along with Rule 10b-5 and Rule 14e-8. He was ordered to pay $13,886 in disgorgement and prejudgment interest, plus a $60,000 civil penalty. Murray, the other defendant, previously settled with the SEC and received a prison sentence in a parallel criminal case.

Enriched metadata

Scheme
market-manipulation (99%)
Court
Southern District of New York
Case No.
1:18-cv-06257
Outcome
sentenced
Disgorgement
$13,886
Civil penalty
$60,000
Victim loss
$13,000
Entity
Mark E. Burns
Classified market-manipulation(confidence 99%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →
Statutes
Section 17(a) of the Securities ActSection 10(b) of the Securities Exchange ActRule 10b-5Rule 14e-8
Parties
Securities and Exchange CommissionMark E Burns
Keywords
burnsmark burnstender offermarksecsecuritiesexchangemurrayofferfinal againstsecurities exchangenovember burnsexchange thereunderfitbitscheme

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 3
  • $60K $60,000 $10K–$100K
  • $14K $13,886 $10K–$100K
  • $13K $13,000 $10K–$100K
Entities 4
  • person fitbit call options
  • person mark e. burns
  • court u.s. district court for the southern district of new york
  • organization U.S. District Court For The Southern District Of New York
Triples 18
  • SEC obtains final judgment against Second Defendant in Fitbit Stock Manipulation Scheme
  • U.S. District Court for the Southern District of New York entered final judgment against Mark E. Burns for his participation in a scheme to manipulate the price of Fitbit, Inc. securities through false regulatory filings
  • SEC filed Complaint
  • Mark E. Burns purchased Fitbit call options
  • Mark E. Burns participated in a scheme to manipulate the price of Fitbit, Inc. securities through false regulatory filings
  • SEC obtained final judgment against Mark E. Burns
  • SEC filed Complaint against Mark E. Burns on July 11, 2018
  • Mark E. Burns purchased Fitbit call options on November 9, 2016
  • U.S. District Court for the Southern District of New York entered final judgment against Mark E. Burns
  • Mark E. Burns participated in scheme to manipulate the price of Fitbit, Inc. securities
  • Mark E. Burns purchased Fitbit call options
  • SEC filed Complaint
  • Mark E. Burns filed false regulatory filings
  • SEC obtains final judgment against second defendant
  • U.S. District Court for the Southern District of New York entered final judgment against Mark E. Burns
  • Mark E. Burns participated in scheme to manipulate Fitbit, Inc. securities
  • SEC's Complaint alleged Burns purchased Fitbit call options
  • Mark E. Burns purchased Fitbit call options
PDF (from attached: complaint)
Comp24557 · Source
Text layers
Extracted body text (2,053c) 
SEC Obtains Final Judgment Against Second Defendant in Fitbit Stock Manipulation Scheme Litigation Release No. 24557 / August 12, 2019 Securities and Exchange Commission v. Mark E. Burns, No. 1:18-cv-06257 (S.D.N.Y. filed July 11, 2018) On August 5, 2019, the U.S. District Court for the Southern District of New York entered a final judgment against Mark E. Burns for his participation in a scheme to manipulate the price of Fitbit, Inc. securities through false regulatory filings. The SEC's Complaint, filed on July 11, 2018, alleged that on November 9, 2016, Burns purchased Fitbit call options just minutes before he and his co-conspirator, Robert W. Murray, filed a fake tender offer on the SEC's EDGAR system purporting to offer to acquire Fitbit's shares at a substantial premium. Fitbit's stock price temporarily spiked when the tender offer became publicly available on November 10, 2016, and Burns sold all of his options for a profit of approximately $13,000. Without admitting or denying the allegations of the Complaint, Burns has consented to the entry of a judgment permanently enjoining him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and the tender offer provisions of Section 14(e) of the Exchange Act and Rule 14e-8 thereunder. The judgment also orders Burns to pay $13,886 in disgorgement and prejudgment interest, and a civil penalty of $60,000. The SEC previously charged Murray for his role in the same scheme, and Murray settled with the SEC. Murray also was sentenced to prison in a parallel criminal case. The SEC's investigation was conducted by David W. Snyder and Assunta Vivolo of the Cyber Unit, with the assistance of Patrick A. McCluskey of the Market Abuse Unit. The case was supervised by Robert A. Cohen, Kelly L. Gibson, and Joseph G. Sansone. The litigation was led by Julia C. Green of the Philadelphia Regional Office and supervised by Jennifer C. Barry. SEC Complaint
OCR text (2,053c · html-text · 99% conf) 
SEC Obtains Final Judgment Against Second Defendant in Fitbit Stock Manipulation Scheme Litigation Release No. 24557 / August 12, 2019 Securities and Exchange Commission v. Mark E. Burns, No. 1:18-cv-06257 (S.D.N.Y. filed July 11, 2018) On August 5, 2019, the U.S. District Court for the Southern District of New York entered a final judgment against Mark E. Burns for his participation in a scheme to manipulate the price of Fitbit, Inc. securities through false regulatory filings. The SEC's Complaint, filed on July 11, 2018, alleged that on November 9, 2016, Burns purchased Fitbit call options just minutes before he and his co-conspirator, Robert W. Murray, filed a fake tender offer on the SEC's EDGAR system purporting to offer to acquire Fitbit's shares at a substantial premium. Fitbit's stock price temporarily spiked when the tender offer became publicly available on November 10, 2016, and Burns sold all of his options for a profit of approximately $13,000. Without admitting or denying the allegations of the Complaint, Burns has consented to the entry of a judgment permanently enjoining him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and the tender offer provisions of Section 14(e) of the Exchange Act and Rule 14e-8 thereunder. The judgment also orders Burns to pay $13,886 in disgorgement and prejudgment interest, and a civil penalty of $60,000. The SEC previously charged Murray for his role in the same scheme, and Murray settled with the SEC. Murray also was sentenced to prison in a parallel criminal case. The SEC's investigation was conducted by David W. Snyder and Assunta Vivolo of the Cyber Unit, with the assistance of Patrick A. McCluskey of the Market Abuse Unit. The case was supervised by Robert A. Cohen, Kelly L. Gibson, and Joseph G. Sansone. The litigation was led by Julia C. Green of the Philadelphia Regional Office and supervised by Jennifer C. Barry. SEC Complaint

Related documents (1)