JASON GENET
- Manager For Colorado Fighters Named in SEC Fraud
Complaint
12-23-2009
Denver,
CO
Colorado MMA Fighters Shane Carwin,
Eliot Marshall, Brendan Schaub, Rocky Johnson, Chase
Hackett, and Alicia Gumm's Manager Named In Fraud Case
U.S.
SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21232 / September 30, 2009
SEC v. Jason M. Genet, Civil Action No. 09-CV-4215 (E.D.N.Y.)
(Seybert, J)
SEC Files Fraud Charges Against Jason M. Genet,
Former Stock Promoter of China Energy Savings
Technology, Inc.
The Securities and Exchange Commission today filed a
civil action against Jason M. Genet of Phoenix,
Arizona, alleging that Genet participated in an
elaborate stock manipulation scheme involving China
Energy Savings Technology, Inc., a now-defunct
Nevada company with purported operations in China.
In its complaint, the Commission alleges that Genet
helped China Energy falsely obtain a listing on the
Nasdaq National Market System ("NMS") and entered
into secret arrangements to give away China Energy
stock to people who agreed to purchase China Energy
stock in the market, thereby creating the false and
misleading impression of bona fide and active
investor interest in China Energy. The Complaint
alleges that Genet acted in concert with Chiu Wing
Chiu, a Chinese national who secretly controlled
China Energy. The Commission previously sued Chiu
and his associates for their conduct in the China
Energy fraud.
Among other things, the Commission's Complaint
alleges that Genet played a crucial role in the
illegal "pump and dump" manipulation of the common
stock of China Energy. According to the Complaint,
as part of the manipulation, Genet: (i) helped China
Energy falsely obtain a listing on the Nasdaq NMS by
helping China Energy to give away shares to hundreds
of persons, and thereby created the false and
misleading impression that China Energy had a bona
fide and active shareholder base; (ii) engaged in
unregistered distributions of securities; and (iii)
entered into secret arrangements to give away China
Energy stock to persons who agreed to purchase China
Energy stock in the market, and thereby created the
false and misleading impression of active trading
and interest in China Energy. In payment for his
fraudulent activities, Genet received thousands of
shares of China Energy stock, which he later sold
into the artificially inflated market, realizing
illicit profits in excess of $1.7 million.
The Commission's complaint charges Genet with
violating the antifraud and registration provisions
of the federal securities laws (Section 10(b) of the
Securities Exchange Act of 1934 and Rule 10b-5
thereunder, and Sections 5(a), 5(c), and 17(a) of
the Securities Act of 1933). The Commission seeks a
permanent injunction against Genet prohibiting him
from further violations of the securities laws,
disgorgement of his ill-gotten gains, civil
penalties and a penny stock bar.
The Commission previously filed fraud charges
against China Energy, Chiu Wing Chiu, and several of
Chiu's associates, seeking permanent injunctions,
disgorgement, penalties, and other relief, as well
as an order freezing $3.9 million in assets held in
four U.S. brokerage accounts by nominees of Chiu.
See Lit. Rel. 19933 (Dec. 4, 2006). On March 27,
2009, the court entered final judgments against
Chiu, Lai Fun "Stella" Sim, Jun Tang Zhao, Sun Li,
and New Solomon Consultants, finding them liable for
fraud, and ordering them to pay disgorgement,
prejudgment interest, and civil penalties. The court
also imposed officer-and-director bars against Chiu,
Sim, Zhao, and Li. On July 31, 2009, the court
entered a final judgment against the relief
defendant nominees of Chiu, ordering that the $3.9
million still held in U.S. brokerage accounts be
turned over as proceeds of the fraud.
For additional related actions by the Commission
against China Energy, see Rel. 34-53839 (May 19,
2006) (suspending trading in China Energy stock);
Rel. 34-54503A (Sept. 26, 2006) (imposing a second
trading suspension in China Energy stock); Admin.
Proc. 34-54502 (Sept. 26, 2006) (instituting
administrative proceedings against China Energy to
determine whether to revoke the company's
securities); and Admin. Proc. 34-54881 (Dec. 6,
2006) (administrative law judge's order revoking
China Energy's stock registration statements).
The Commission would like to acknowledge the
assistance afforded by the Nasdaq Stock Market in
this matter.
http://www.sec.gov/litigation/litreleases/2009/lr21232.htm
SEC
Complaint (PFD)
http://magneticmarketingassoc.com/fighters.php
http://starpas.azcc.gov/scripts/cgiip.exe/WService=wsbroker1/names-detail.p?name-id=R15058274&type=FOREIGN
L.L.C.
Editor's
note:
This
story is strangely similar to that of former
Colorado WFC fight promoter Gene Odice (a.k.a Gino
Carlucci), also from Arizona.
http://www.sec.gov/litigation/complaints/comp18413.htm
http://www.sec.gov/litigation/litreleases/lr18930.htm
