Penny-Stock Dealer Should Pay More Than $8 Million, Judge Says

A dealer who was found liable for trading large volumes of low-capitalization stocks while unregistered should disgorge $7.2 million plus interest and pay a civil penalty of more than $1 million, a federal magistrate judge in Florida recommended.

The amount is less than the Securities and Exchange Commission requested, according to a report that the judge filed Monday.

The agency’s requests that Justin W. Keener be ordered not to deal in stocks while unregistered and be barred from offering penny stocks should be granted, Magistrate Judge Lauren F. Louis told the judge overseeing the case in the US District Court ...