2024-06-13 sec-litreleases litigation_release 64 KB 2,349 chars

SEC v. Gannon Giguiere, No. LR-26024, Southern District of California (June 13, 2024) — Press Release

raw: Giguiere et al.

Giguiere et al., No. LR-26024 (June 13, 2024)

Caption: SEC v. Gannon Giguiere

summary

The SEC obtained a judgment of over $10 million against stock promoter Gannon Giguiere for orchestrating fraudulent microcap schemes involving two secretly controlled companies.

paragraph

Giguiere was charged with violating the Securities Exchange Act of 1934 and the Securities Act of 1933 for manipulating two microcap issuers. The court granted the SEC's request for $7,760,415.97 in disgorgement, $2,091,439.85 in prejudgment interest, and $875,000 in civil penalties. As part of the settlement, Giguiere received a permanent injunction along with an officer-and-director bar and a penny stock bar.

narrative

The SEC successfully obtained a judgment exceeding $10 million against stock promoter Gannon Gigui and his fraudulent microcap schemes. Giguiere used undisclosed control of a cannabis technology company to improperly issue and liquidate stock for several million dollars in illicit proceeds. He also executed a matched trading scheme involving a medical device company and a Cayman Islands-based broker, generating over $1.5 million in proceeds. The SEC charged him with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. Without admitting or denying the allegations, Giguiere consented to a settlement including a permanent injunction, an officer-and-director bar, and a penny stock bar. The final court order granted $7,760,415.97 in disgorgement, $2,091,439.85 in prejudgment interest, and $875,000 in civil penalties.

Enriched metadata

Scheme: market-manipulation (95%)
Court: Southern District of California
Outcome: settled
Disgorgement: $2,091,440
Civil penalty: $875,000
Entity: Gannon Giguiere

Classified market-manipulation(confidence 95%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →

Extracted insights

Dollar amounts 5

$10.00M $10 Million $10M–$100M
$7.76M $7,760,415 $1M–$10M
$2.09M $2,091,439 $1M–$10M
$1.50M $1.5 million $1M–$10M
$875K $875,000 $100K–$1M

Entities 4

person gannon giguiere
agency sec's motion for monetary remedies on june 11, 2024
agency Securities and Exchange Commission
court united states district court for southern district of california

Triples 13

Securities And Exchange Commission obtained over $10 million judgment in microcap fraud litigation
Gannon Giguiere engaged in fraudulent schemes involving two separate microcap issuers he controlled on an undisclosed basis
Gannon Giguiere caused first issuer to improperly issue stock to his nominee entity and liquidated that stock while promoting it
Gannon Giguiere earned several million dollars in illicit proceeds from first scheme
Gannon Giguiere used undisclosed control of second issuer to conduct matched trading scheme with Cayman Islands-based broker and FBI cooperating witness
Gannon Giguiere grossed over $1.5 million in proceeds from second scheme
Securities And Exchange Commission charged Gannon Giguiere with violating Section 10(b) of Securities Exchange Act of 1934 and Rule 10b-5 and Sections 5(a) and 5(c) of Securities Act of 1933
Gannon Giguiere consented to bifurcated settlement including permanent injunction, officer-and-director bar, and penny stock bar
United States District Court for Southern District of California entered bifurcated consent judgment on April 17, 2023
Securities And Exchange Commission moved for $7,760,415.97 in disgorgement, $2,091,439.85 in prejudgment interest, and $875,000 in civil penalties
United States District Court for Southern District of California granted SEC's motion for monetary remedies on June 11, 2024
Securities And Exchange Commission led litigation by Christopher J. Dunnigan, Christine D. Ely, and Lindsay S. Moilanen of New York Regional Office
Securities And Exchange Commission supervised by Sheldon L. Pollock and Daniel Loss

View original SEC litigation releasesec.gov

Extracted body text (2,349c)

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26024 / June 13, 2024 Securities and Exchange Commission v. Giguiere et al., Civil Action No. 18-cv-1530 (S.D. Cal. filed July 6, 2018; amended Aug. 5, 2022 and Apr. 7, 2023) SEC Obtains Over $10 Million Judgment in Microcap Fraud Litigation On June 11, 2024, the United States District Court for the Southern District of California granted the Securities and Exchange Commission’s request for monetary remedies against Gannon Giguiere. According to the SEC’s complaint filed on July 6, 2018 and amended twice, stock promoter Giguiere engaged in fraudulent schemes involving two separate microcap issuers he controlled on an undisclosed basis. Giguiere allegedly caused the first issuer, a purported technology company focused on the cannabis industry, to improperly issue stock to his nominee entity, and then liquidated that stock while concurrently promoting it, earning several million dollars in illicit proceeds. According to the complaint, Giguiere also used his undisclosed control of the second issuer, a purported medical device company, to profit by conducting a matched trading scheme in the stock with a Cayman Islands-based broker and a third individual who, unbeknownst to Giguiere and the broker, was an FBI cooperating witness. Giguiere allegedly grossed over $1.5 million in proceeds as a result of this second scheme, and was taking steps to continue it, when the SEC suspended trading in the stock. The complaint charged Giguiere with violating Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Sections 5(a) and 5(c) of the Securities Act of 1933. Giguiere, without admitting or denying the allegations, consented to a bifurcated settlement, agreeing to be permanently enjoined from violations of the charged provisions and to an officer-and-director bar and a penny stock bar. The Court entered the bifurcated consent judgment on April 17, 2023. The SEC made a motion for $7,760,415.97 in disgorgement and prejudgment interest thereon of $2,091,439.85 and civil penalties of $875,000, which the Court granted on June 11, 2024. The SEC’s litigation is being led by Christopher J. Dunnigan, Christine D. Ely, and Lindsay S. Moilanen of the SEC’s New York Regional Office and is being supervised by Sheldon L. Pollock and Daniel Loss.

OCR text (2,349c · html-text · 99% conf)