A Kansas man who allegedly violated an SEC trading suspension on penny stocks should give up almost $586,000 in profits, a Florida judge recommended, advancing the agency’s arguments that disgorgement doesn’t always need to benefit investors.
Alexander Kon allegedly violated the Securities and Exchange Commission order by promoting various suspended penny stocks on his website and through other stock promoters. He settled with the SEC in December without admitting or denying the allegations.
The SEC argued Kon should be ordered to disgorge $585,960 in profits, plus interest, even though no investors were harmed by Kon’s actions.
The SEC has the ...
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