2024-10-22 sec-litreleases litigation_release 65 KB 2,409 chars

SEC v. Ryan Choi, No. LR-26164, Central District of California (Oct. 22, 2024) — Press Release

raw: Ryan Choi

Ryan Choi, No. 2:24-cv-09082 (Oct. 22, 2024)

Caption
Securities and Exchange Commission v. Ryan Choi
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summary

Ryan Choi settled SEC charges for negligently participating in a scheme to defraud Citron Research readers, agreeing to pay over $1.8 million in penalties and profits.

paragraph

Ryan Choi settled SEC charges for negligently participating in a scheme to defraud Citron Research readers through two misleading stock recommendations in December 2020. He is charged with violating Section 17(a)(3) of the Securities Act of 1933 after failing to conduct adequate due diligence and failing to disclose personal trades. Choi agreed to pay over $1.8 million, consisting of $1,647,217 in disgorgement, $115,231 in civil penalties, and $64,818 in prejudgment interest.

narrative

Ryan Choi agreed to settle SEC charges for his negligent involvement in a scheme to defraud Citron Research readers via two 'buy' recommendations in December 2020. Working with Andrew Left, Choi provided inadequate research and failed to disclose that he personally profited $1,647,217 from the resulting price increases. The SEC's complaint alleges Choi violated Section 17(a)(3) of the Securities Act of 1933. To resolve the matter, Choi agreed to a final judgment that includes a permanent injunction against future violations. His total settlement exceeds $1.8 million, comprising $1,647,217 in disgorgement, $115,231 in civil penalties, and $64,818 in prejudgment interest. This settlement was reached without Choi admitting or denying the underlying allegations.

Enriched metadata

Scheme
pump-and-dump (95%)
Court
Central District of California
Case No.
2:24-cv-09082
Outcome
settled
Disgorgement
$1,647,217
Civil penalty
$115,231
Victim loss
$1,800,000
Entity
Ryan Choi
Classified pump-and-dump(confidence 95%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Statutes
Section 17(a)(3) of the Securities ActSection 17(a)(3) of the Securities Act
Parties
Securities and Exchange CommissionRyan Choi
Keywords
citron researchchoiresearchryan choiseccitrontweetssecurities exchangeexchange commissionscheme defraudresearch tweetssecuritiesleftryandefraud readers

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 5
  • $1.80M $1.8 million $1M–$10M
  • $1.65M $1,647,217 $1M–$10M
  • $1.65M $1,647,217 $1M–$10M
  • $115K $115,231 $100K–$1M
  • $65K $64,818 $10K–$100K
Entities 3
  • agency Financial Industry Regulatory Authority
  • person ryan choi
  • agency Securities and Exchange Commission
Triples 11
  • Securities And Exchange Commission announced Ryan Choi agreed to pay more than $1.8 million to settle charges
  • Securities And Exchange Commission charged Andrew Left for engaging in a scheme to defraud Citron Research followers
  • Ryan Choi worked with Andrew Left on the research and content for two buy recommendations
  • Ryan Choi failed to act reasonably by not conducting adequate research or due diligence
  • Ryan Choi traded on price increases that came after two Citron Research tweets
  • Ryan Choi made $1,647,217 in profits in connection with trading around two tweets
  • Securities And Exchange Commission charges Ryan Choi with violating Section 17(a)(3) of the Securities Act of 1933
  • Ryan Choi agreed to entry of a final judgment permanently enjoining him from violating Section 17(a)(3) of the Securities Act
  • Ryan Choi agreed to pay a civil penalty of $115,231, disgorgement of $1,647,217, and prejudgment interest of $64,818
  • Securities And Exchange Commission conducted investigation by Wendy E. Pearson and Sarah S. Nilson
  • Securities And Exchange Commission received assistance from Financial Industry Regulatory Authority
PDF (from attached: complaint)
1.The Court has jurisdiction over this action pursuant to Sections 20(b), · Source
Text layers
Extracted body text (2,409c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26164 / October 22, 2024 Securities and Exchange Commission v. Ryan Choi, No. 2:24-cv-09082 (C.D. Cal. filed Oct. 22, 2024) SEC Settles Action Against Beverly Hills Resident For Involvement In Scheme to Defraud Readers of Citron Research Tweets The Securities and Exchange Commission today announced that Ryan Choi agreed to pay more than $1.8 million to settle charges that he negligently engaged in a scheme to defraud readers of Citron Research in connection with two tweets issued by the platform. In July 2024, the SEC charged Andrew Left, who operates the Citron Research website and related social media platforms, for engaging in a scheme to defraud Citron Research followers by publishing false and misleading statements regarding his supposed stock trading recommendations. The SEC’s complaint against Choi alleges that in December 2020, Choi worked with Left on the research and content for two buy recommendations that Left issued through Citron Research. According to the complaint, Choi failed to act reasonably by not conducting adequate research or due diligence, which he provided to Left to support the recommendations that Left included in the Citron Research tweets. The complaint further alleges that Choi quickly traded on price increases that came after the two Citron Research tweets, and negligently failed to ensure that this trading activity was adequately disclosed in the tweets. According to the complaint, Choi made a total of $1,647,217 in profits in connection with his trading around these two tweets. The SEC’s complaint charges Choi with violating Section 17(a)(3) of the Securities Act of 1933. Without admitting or denying the allegations of the complaint, Choi agreed to the entry of a final judgment permanently enjoining him from violating Section 17(a)(3) of the Securities Act and requiring him to pay a civil penalty of $115,231, disgorgement of $1,647,217, and prejudgment interest of $64,818. The SEC’s investigation was conducted by Wendy E. Pearson and Sarah S. Nilson and supervised by Finola H. Manvelian. Trial attorney Stephen Kam, Carina Chambarry and Michael Barnes in the SEC’s Division of Economic and Risk Analysis, and Darren Boerner in the Division of Enforcement’s Market Abuse Unit provided assistance. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.
OCR text (2,409c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26164 / October 22, 2024 Securities and Exchange Commission v. Ryan Choi, No. 2:24-cv-09082 (C.D. Cal. filed Oct. 22, 2024) SEC Settles Action Against Beverly Hills Resident For Involvement In Scheme to Defraud Readers of Citron Research Tweets The Securities and Exchange Commission today announced that Ryan Choi agreed to pay more than $1.8 million to settle charges that he negligently engaged in a scheme to defraud readers of Citron Research in connection with two tweets issued by the platform. In July 2024, the SEC charged Andrew Left, who operates the Citron Research website and related social media platforms, for engaging in a scheme to defraud Citron Research followers by publishing false and misleading statements regarding his supposed stock trading recommendations. The SEC’s complaint against Choi alleges that in December 2020, Choi worked with Left on the research and content for two buy recommendations that Left issued through Citron Research. According to the complaint, Choi failed to act reasonably by not conducting adequate research or due diligence, which he provided to Left to support the recommendations that Left included in the Citron Research tweets. The complaint further alleges that Choi quickly traded on price increases that came after the two Citron Research tweets, and negligently failed to ensure that this trading activity was adequately disclosed in the tweets. According to the complaint, Choi made a total of $1,647,217 in profits in connection with his trading around these two tweets. The SEC’s complaint charges Choi with violating Section 17(a)(3) of the Securities Act of 1933. Without admitting or denying the allegations of the complaint, Choi agreed to the entry of a final judgment permanently enjoining him from violating Section 17(a)(3) of the Securities Act and requiring him to pay a civil penalty of $115,231, disgorgement of $1,647,217, and prejudgment interest of $64,818. The SEC’s investigation was conducted by Wendy E. Pearson and Sarah S. Nilson and supervised by Finola H. Manvelian. Trial attorney Stephen Kam, Carina Chambarry and Michael Barnes in the SEC’s Division of Economic and Risk Analysis, and Darren Boerner in the Division of Enforcement’s Market Abuse Unit provided assistance. The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

Related documents (1)