2025-01-16 sec-litreleases litigation_release 65 KB 2,326 chars

SEC v. Andrew Hackett, No. LR-26222, Southern District of California (Jan. 16, 2025) — Press Release

raw: Andrew Hackett

Andrew Hackett, No. LR-26222 (Jan. 16, 2025)

Caption: SEC v. Andrew Hackett

summary

Andrew Hackett secured a summary judgment against him for microcap fraud involving Arias Intel Corp. (ASNT) stock manipulation, resulting in a permanent penny stock bar and injunction.

paragraph

Andrew Hackett was found liable for violating Section 10(b) of the Exchange Act and Rule 10b-5 through a scheme to manipulate Arias Intel Corp. (ASNT) stock. The court granted the SEC's motion for summary judgment based on Hackett's prior criminal conviction for related conduct. The final judgment included full disgorgement and prejudgment interest, which were deemed satisfied by his criminal restitution order.

narrative

The SEC successfully obtained summary judgment against Andrew Hackett for his role in a microcap fraud scheme involving the manipulation of Arias Intel Corp. (ASNT) stock. Beginning in February 2017, Hackett and his co-defendants orchestrated a plan to control ASNT shares through premium-priced purchases and a convertible promissory note. The group aimed to drive the stock price to $5.00 per share to split the proceeds and engaged in matched trading with an undercover FBI agent. Based on Hackett's existing criminal conviction, the Court found him in violation of Section 10(b) of the Exchange Act and Rule 10b-5. The judgment imposed a permanent injunction and a permanent penny stock bar. Additionally, the Court granted full disgorgement and prejudgment interest, which were satisfied via his criminal restitution order.

Enriched metadata

Scheme: pump-and-dump (100%)
Court: Southern District of California
Entity: Andrew Hackett

Classified pump-and-dump(confidence 100%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →

Extracted insights

Entities 6

company group
person second defendant
agency sec’s litigation
agency Securities and Exchange Commission
agency to an undercover fbi agent as part of an intended matched trading scheme
court united states district court for the southern district of california

Triples 13

Securities And Exchange Commission Obtains Summary Judgment In Microcap Fraud Litigation
United States District Court For The Southern District Of California Grants Motion For Summary Judgment Against Andrew Hackett Based On His Criminal Conviction
Hackett Engaged In Scheme In Conjunction With a Promotion Of The Stock Of Arias Intel Corp. ("Asnt")
Hackett Bought Asnt Shares From Another Defendant At a Significant Premium To The Stock’s Trading Price
Second Defendant Caused Asnt To Issue a Convertible Promissory Note To Hackett
Group Agreed To Split Proceeds Once Asnt Reached a Target Price Of $5.00 Per Share
Hackett Sold Asnt Stock To An Undercover Fbi Agent As Part Of An Intended Matched Trading Scheme
Securities And Exchange Commission Moved For Summary Judgment Against Hackett On Its Causes Of Action
Court Found That Hackett Violated Section 10(b) Of The Exchange Act Of 1934 And Rule 10b-5(a) And (c) Thereunder
Court Granted Sec’s Requests For Full Amount Of Disgorgement And Prejudgment Interest, Permanent Injunction, And Permanent Penny Stock Bar
Court Entered Judgment Against Hackett Consistent With Its Summary Judgment Decision
Sec’s Litigation Was Led By Christopher J. Dunnigan, Christine D. Ely, And Lindsay S. Moilanen Of The Sec’s New York Regional Office
Sec’s Litigation Is Being Supervised By Sheldon L. Pollock And Daniel Loss

View original SEC litigation releasesec.gov

Extracted body text (2,326c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26222 / January 16, 2025 Securities and Exchange Commission v. Giguiere et al., Civil Action No. 18-cv-1530 (S.D. Cal. filed July 6, 2018; amended August 5, 2022 and April 7, 2023) SEC Obtains Summary Judgment in Microcap Fraud Litigation On November 18, 2024, the United States District Court for the Southern District of California granted the Securities and Exchange Commission’s motion for summary judgment against Andrew Hackett based on his criminal conviction for related conduct. According to the SEC’s complaint, beginning in February 2017, Hackett and others engaged in a scheme in conjunction with a promotion of the stock of Arias Intel Corp. (“ASNT”). The SEC alleged that in August 2017, Hackett bought ASNT shares from another defendant at a significant premium to the stock’s trading price as part of a scheme for Hackett to control the company’s shares. According to the SEC’s complaint, the same month, a second defendant caused ASNT to issue to Hackett a convertible promissory note, enabling him to acquire more ASNT shares. The group agreed that once ASNT reached a target price of $5.00 per share, Hackett would begin selling the shares and the group would then split the proceeds. The complaint further alleged that Hackett sold ASNT stock to an undercover FBI agent as part of an intended matched trading scheme. The SEC moved for summary judgment against Hackett on its causes of action and the relief sought in its complaint based on his criminal conviction. The Court found that Hackett violated Section 10(b) of the Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5(a) and (c) thereunder. The Court further granted the SEC’s requests for the full amount of disgorgement and prejudgment interest sought (deemed satisfied by the order of restitution in his criminal case), a permanent injunction enjoining Hackett from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and a permanent penny stock bar. On January 8, 2025, the Court entered a judgment against Hackett consistent with its summary judgment decision. The SEC’s litigation was led by Christopher J. Dunnigan, Christine D. Ely, and Lindsay S. Moilanen of the SEC’s New York Regional Office and is being supervised by Sheldon L. Pollock and Daniel Loss.

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