SEC v. Nicholas Louis Geranio; The Good One, Inc.; Kaleidoscope Real Estate, Inc.; and BWRE Hawaii, LLC, No. LR-22865, Central District of California (Nov. 7, 2013) — Press Release
raw: Nicholas Louis Geranio, et al.
Nicholas Louis Geranio, et al., No. LR-22865 (Nov. 7, 2013)
Nicholas Louis Geranio and his entities orchestrated a $35 million international boiler room scheme, manipulating penny stock prices and defrauding investors, and were ordered to pay $2.135 million in disgorgement, $427,270 in prejudgment interest, and a $500,000 civil penalty.
Nicholas Louis Geranio, The Good One, Inc., and Kaleidoscope Real Estate, Inc. were accused of perpetrating a $35 million international boiler room scheme to manipulate the market and profit from the issuance and sale of certain U.S. companies' stock. The scheme involved setting up offshore boiler rooms to sell Regulation S shares to investors using high-pressure sales tactics and false statements, with the boiler rooms receiving 60-75% of investors' funds as undisclosed sales markups. Geranio and his entities were ordered to pay $2,135,000 in disgorgement, $427,270 in prejudgment interest, and a $500,000 civil penalty.
Nicholas Louis Geranio, The Good One, Inc., and Kaleidoscope Real Estate, Inc. were accused of perpetrating a $35 million international boiler room scheme to manipulate the market and profit from the issuance and sale of certain U.S. companies' stock. The scheme involved setting up offshore boiler rooms to sell Regulation S shares to investors using high-pressure sales tactics and false statements, with the boiler rooms receiving 60-75% of investors' funds as undisclosed sales markups. Geranio and his entities used offshore sales teams to sell Regulation S shares of eight shell companies, including Green Energy Live, Inc. and Spectrum Acquisition Holdings, Inc., through deceptive, high-pressure tactics. The court ordered Geranio and his entities to pay $2.135 million in disgorgement, $427,270 in prejudgment interest, and a $500,000 civil penalty, along with permanent bans from penny stock offerings and securities law violations. Geranio was also barred from serving as an officer or director of a public company. Additionally, an extra $279,000 in disgorgement (plus interest) was ordered against Geranio for funds received by co-defendant Keith Field, and relief defendant BWRE Hawaii, LLC was ordered to pay $240,000 in disgorgement plus interest.
Extracted insights
- $35.00M $35 Million $10M–$100M
- $35.00M $35 million $10M–$100M
- $2.13M $2,135,000 $1M–$10M
- $2.13M $2,135,000 $1M–$10M
- $500K $500,000 $100K–$1M
- $427K $427,270 $100K–$1M
- $279K $279,000 $100K–$1M
- $240K $240,000 $100K–$1M
- $240K $240,000 $100K–$1M
- $56K $55,835 $10K–$100K
- $55K $55,295 $10K–$100K
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- Securities and Exchange Commission obtained final judgment against defendants Nicholas Louis Geranio, The Good One, Inc., and Kaleidoscope Real Estate charged with perpetrating $35 million international boiler room scheme
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 22865 / November 7, 2013 Securities and Exchange Commission v. Nicholas Louis Geranio, et al., Civil Action No. CV12-04257 (C.D. Calif. May 16, 2012) SEC Obtains Final Judgment Against Defendants Charged with Perpetrating $35 Million International Boiler Room Scheme The Securities and Exchange Commission announced that the United States District Court for the Central District of California entered a final, settled judgment against defendants Nicholas Louis Geranio, The Good One, Inc., and Kaleidoscope Real Estate, Inc. for their roles in a $35 million scheme to manipulate the market and to profit from the issuance and sale of certain U.S. companies' stock through offshore boiler rooms. Pursuant to the judgment issued on November 1, 2013, the court ordered Geranio, The Good One and Kaleidoscope jointly and severally to pay disgorgement of $2,135,000, prejudgment interest thereon of $427,270, and a civil penalty of $500,000, barred them from participating in any offering of penny stock, and permanently enjoined them from violations of the antifraud provisions of the federal securities laws. The judgment also barred Geranio from acting as an officer or director of any public company and ordered him to pay an additional $279,000 in disgorgement plus prejudgment interest thereon of $55,835, representing monies received by another defendant, Keith Field, provided that the SEC shall not obtain double recovery from Geranio and Field. Finally, the judgment ordered relief defendant BWRE Hawaii, LLC to pay, jointly and severally with Geranio, The Good One, and Kaleidoscope, an additional $240,000 in disgorgement plus prejudgment interest thereon of $55,295. The SEC's complaint, filed on May 16, 2012, alleged that defendants' scheme worked as follows: From approximately April 2007 to October 2009, Geranio organized eight U.S. companies: Green Energy Live, Inc.; Spectrum Acquisition Holdings, Inc.; United States Oil & Gas Corp.; Mundus Group, Inc.; Blu Vu Deep Oil & Gas Exploration, Inc.; Wyncrest Group, Inc.; Microresearch Corp.; and Power Nanotech, Inc. (the "Issuers"), installed management, and entered into consulting agreements with them through his alter-ego entities The Good One and Kaleidoscope. Geranio then set up a common system to raise money through the Issuers' sale of Regulation S shares to investors by offshore boiler rooms that Geranio recruited, and also directed traders to engage in matched orders and manipulative trades to establish artificially high prices for at least five of the Issuers' stock. The boiler rooms used high-pressure sales tactics and materially false statements and omissions to induce the investors, many of them elderly and from the United Kingdom, to buy the Regulation S stock. The boiler rooms received 60% to 75% of investors' funds as undisclosed sales markups, while Geranio received $2,135,000 through The Good One and Kaleidoscope and BWRE Hawaii received $240,000. Defendant Keith M. Field remains a defendant in the case. For further information, please see Litigation Release Number 22370 (May 16, 2012).
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 22865 / November 7, 2013 Securities and Exchange Commission v. Nicholas Louis Geranio, et al., Civil Action No. CV12-04257 (C.D. Calif. May 16, 2012) SEC Obtains Final Judgment Against Defendants Charged with Perpetrating $35 Million International Boiler Room Scheme The Securities and Exchange Commission announced that the United States District Court for the Central District of California entered a final, settled judgment against defendants Nicholas Louis Geranio, The Good One, Inc., and Kaleidoscope Real Estate, Inc. for their roles in a $35 million scheme to manipulate the market and to profit from the issuance and sale of certain U.S. companies' stock through offshore boiler rooms. Pursuant to the judgment issued on November 1, 2013, the court ordered Geranio, The Good One and Kaleidoscope jointly and severally to pay disgorgement of $2,135,000, prejudgment interest thereon of $427,270, and a civil penalty of $500,000, barred them from participating in any offering of penny stock, and permanently enjoined them from violations of the antifraud provisions of the federal securities laws. The judgment also barred Geranio from acting as an officer or director of any public company and ordered him to pay an additional $279,000 in disgorgement plus prejudgment interest thereon of $55,835, representing monies received by another defendant, Keith Field, provided that the SEC shall not obtain double recovery from Geranio and Field. Finally, the judgment ordered relief defendant BWRE Hawaii, LLC to pay, jointly and severally with Geranio, The Good One, and Kaleidoscope, an additional $240,000 in disgorgement plus prejudgment interest thereon of $55,295. The SEC's complaint, filed on May 16, 2012, alleged that defendants' scheme worked as follows: From approximately April 2007 to October 2009, Geranio organized eight U.S. companies: Green Energy Live, Inc.; Spectrum Acquisition Holdings, Inc.; United States Oil & Gas Corp.; Mundus Group, Inc.; Blu Vu Deep Oil & Gas Exploration, Inc.; Wyncrest Group, Inc.; Microresearch Corp.; and Power Nanotech, Inc. (the "Issuers"), installed management, and entered into consulting agreements with them through his alter-ego entities The Good One and Kaleidoscope. Geranio then set up a common system to raise money through the Issuers' sale of Regulation S shares to investors by offshore boiler rooms that Geranio recruited, and also directed traders to engage in matched orders and manipulative trades to establish artificially high prices for at least five of the Issuers' stock. The boiler rooms used high-pressure sales tactics and materially false statements and omissions to induce the investors, many of them elderly and from the United Kingdom, to buy the Regulation S stock. The boiler rooms received 60% to 75% of investors' funds as undisclosed sales markups, while Geranio received $2,135,000 through The Good One and Kaleidoscope and BWRE Hawaii received $240,000. Defendant Keith M. Field remains a defendant in the case. For further information, please see Litigation Release Number 22370 (May 16, 2012).