This week in securities litigation (week ending November 8, 2013)

Manipulation: SEC v. Geranio, Civil Action No. CV12-04257 (C.D. Cal.) is a previously filed action against Nicholas Geranio, the Good One, Inc. and Kaleidoscope Real Estate Inc. centered on a $35 million scheme to manipulate the shares of several companies whose securities were sold through boiler rooms. The Court entered a final judgment by consent against the defendants. That judgment prohibits future violations of the antifraud provisions of the federal securities laws, directs Mr. Geranio and the two companies to pay, on a joint and several basis, to pay disgorgement of $2,135,000 along with prejudgment interest and a $500,000 civil penalty. The judgment also bars Mr. Geranio from acting as an officer or director of any public company and directs him to pay an additional $279,000 in disgorgement plus prejudgment interest which is the sum received by another defendant, provided that the SEC does not obtain a double recovery. Finally, the order directs relief defendant BWRE Hawaii, LLC to pay, jointly and severally with Mr. Geranio and the other two corporations, an additional $240,000 in disgorgement plus prejudgment interest. See Lit. Rel. No. 22865 (Nov. 7, 2013).


Background (search 10Q for “The Good One”) –

Hal Neilson and Here Enterprises (HRTE) – Welcome to the SEC (and not the football conference)

Must read: Yall Politics explores the hiring of former FBI agent Hal Neilson and his new company contains some very interesting Louisiana connections