U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 24016 /December 18, 2017
Securities and Exchange Commission v. Jason A. Wallace, No. 16-cv-01788 (C.D. Cal. filed Sept. 27, 2016)
SEC Obtains Final Judgment Against Former Boiler Room Operator
The Securities and Exchange Commission has obtained a final judgment against a former boiler room operator charged with participating in a fraudulent scheme to artificially inflate the per share price of penny stocks.
The final judgment, entered on December 15, 2017 by the Honorable Andrew J. Guilford of the U.S. District Court for the Central District of California, permanently enjoins Jason A. Wallace from violating Sections 5 and 17(a) of the Securities Act of 1933 and Sections 9(a)(2), 10(b) and 15(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, bars Wallace from participating in any offering of a penny stock, and orders Wallace to pay $512,048.80 in disgorgement and prejudgment interest and a civil penalty of $434,887.07. The court’s final judgment follows an entry of default judgment against Wallace on May 9, 2017.
The court’s entry of judgment against Wallace resolves this litigation in its entirety.
The SEC’s litigation was led by Duane Thompson and was supervised by Jan M. Folena.