SEC v. Mark Borden, No. LR-25971, Eastern District of New York (Apr. 9, 2024) — Press Release
raw: Mark Borden
Mark Borden, No. 1:24-cv-02621 (E.D.N.Y. Apr. 9, 2024)
summary
Canadian attorney Mark Borden settled SEC charges for acting as an unregistered broker selling billions of penny stock shares by paying over $335,000 and accepting a penny stock bar.
paragraph
Mark Borden was charged with violating Section 15(a)(1) of the Securities Exchange Act of 1934 for selling billions of penny stock shares without broker registration. He allegedly managed stock transfers and commissions between 2017 and 2021, with one client receiving over $15 million in proceeds. To settle the matter, Borden agreed to pay $231,363 in disgorgement, $33,907 in interest, and a $70,000 civil penalty.
narrative
The SEC charged Canadian attorney Mark Borden with violating securities laws by acting as an unregistered broker between 2017 and 2021. Borden allegedly facilitated the sale of billions of penny stock shares by taking possession of stock, managing brokerage accounts, and coordinating with stock promotion campaigns. While he transferred most proceeds to clients—one of whom received over $15 million—he retained commissions for himself. To resolve the charges, Borden agreed to a settlement that includes a penny stock bar and a permanent injunction against future violations. His financial settlement totals over $335,000, consisting of $231,363 in disgorgement, $33,907 in prejudgment interest, and a $70,000 civil penalty. The case was filed in the Eastern District of New York and is handled by the SEC’s Boston Regional Office.
Classified broker-dealer-fraud(confidence 95%). EDGAR detection: forms Form D· recall 29% / precision 9%. detection rule →
Statutes
Section 15(a)(1) of the Securities Exchange ActSection 15(a)(1) of the Securities Exchange Act
Parties
Securities and Exchange CommissionMark Borden
Keywords
bordenstockmark bordensecurities exchangesecuritiescommissionexchange commissionstock salesale proceedsmarkexchangesharesbrokercustomersapril securities
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 5
- $15.00M $15 million $10M–$100M
- $335K $335,000 $100K–$1M
- $231K $231,363 $100K–$1M
- $70K $70,000 $10K–$100K
- $34K $33,907 $10K–$100K
Entities 4
- person mark borden
- agency sec's case
- agency sec's complaint
- agency Securities and Exchange Commission
Triples 15
- Securities And Exchange Commission charged Canadian attorney Mark Borden with selling billions of penny stock shares on behalf of others without registering as a broker
- Mark Borden agreed to settle case by paying over $335,000 in disgorgement, prejudgment interest, and a civil penalty
- Mark Borden sold penny stocks on behalf of his customers without registering as a broker between 2017 and April 2021
- Mark Borden took possession of the stock
- Mark Borden drafted documents that appeared to transfer ownership of the shares to himself
- Mark Borden deposited the stock in accounts he controlled at various brokerage firms
- Mark Borden sold those shares to retail investors
- Mark Borden kept a commission of the stock sale proceeds
- Securities And Exchange Commission alleges Borden and his customers understood that the customer retained beneficial ownership of the stock at all times
- One Of Borden's Customers received over $15 million in stock sale proceeds from Borden in less than three years
- SEC's Complaint charges Borden with violating the securities registration provisions of Section 15(a)(1) of the Securities Exchange Act Of 1934
- Mark Borden consented to entry of a final judgment permanently enjoining him from future violations of the charged provisions
- Mark Borden consented to a penny stock bar
- Mark Borden agreed to pay $70,000 civil penalty, $231,363 in disgorgement, and $33,907 in prejudgment interest
- SEC's Case is being handled by Nita Klunder, David D'Addio, and Paul Block of the Boston Regional Office
PDF (from attached: complaint)
Text layers
Extracted body text (2,448c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25971 / April 9, 2024 Securities and Exchange Commission v. Mark Borden, Civ. Action No. 1:24-cv-02621 (E.D.N.Y. filed Apr. 8, 2024) SEC Charges Canadian Attorney for Selling Billions of Shares of Stock on Behalf of Others in Violation of Broker Registration Requirements On April 8, 2024, the Securities and Exchange Commission charged Canadian attorney Mark Borden with selling billions of penny stock shares on behalf of others without registering with the Commission as a broker, thereby violating the securities laws. Borden has agreed to settle the case by, among other things, paying over $335,000 in disgorgement of ill-gotten gains, prejudgment interest, and a civil penalty. According to the SEC's complaint, between 2017 and April 2021, Borden sold penny stocks on behalf of his customers without registering with the Commission as a broker or being associated with a registered broker. Borden allegedly did so by taking possession of the stock, drafting documents that appeared to transfer ownership of the shares to himself, depositing that stock in accounts he controlled at various brokerage firms, selling those shares to retail investors often in coordination with stock promotion campaigns funded by his customers, and keeping a commission of the stock sale proceeds before disbursing the remainder to his customer. The SEC alleges that Borden and his customers understood that the customer retained beneficial ownership of the stock at all times and would receive the vast majority of the stock sale proceeds. For example, one of Borden's customers allegedly received over $15 million in stock sale proceeds from Borden in less than three years. The SEC's complaint, filed in federal district court in the Eastern District of New York, charges Borden with violating the securities registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. Without admitting or denying the allegations, Borden consented to the entry of a final judgment permanently enjoining him from future violations of the charged provisions. In addition, Borden consented to a penny stock bar. Borden agreed to pay a $70,000 civil penalty, $231,363 in disgorgement, and $33,907 in prejudgment interest. The settlement is subject to court approval. The SEC's case is being handled by Nita Klunder, David D'Addio, and Paul Block of the Boston Regional Office. SEC Complaint
OCR text (2,448c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25971 / April 9, 2024 Securities and Exchange Commission v. Mark Borden, Civ. Action No. 1:24-cv-02621 (E.D.N.Y. filed Apr. 8, 2024) SEC Charges Canadian Attorney for Selling Billions of Shares of Stock on Behalf of Others in Violation of Broker Registration Requirements On April 8, 2024, the Securities and Exchange Commission charged Canadian attorney Mark Borden with selling billions of penny stock shares on behalf of others without registering with the Commission as a broker, thereby violating the securities laws. Borden has agreed to settle the case by, among other things, paying over $335,000 in disgorgement of ill-gotten gains, prejudgment interest, and a civil penalty. According to the SEC's complaint, between 2017 and April 2021, Borden sold penny stocks on behalf of his customers without registering with the Commission as a broker or being associated with a registered broker. Borden allegedly did so by taking possession of the stock, drafting documents that appeared to transfer ownership of the shares to himself, depositing that stock in accounts he controlled at various brokerage firms, selling those shares to retail investors often in coordination with stock promotion campaigns funded by his customers, and keeping a commission of the stock sale proceeds before disbursing the remainder to his customer. The SEC alleges that Borden and his customers understood that the customer retained beneficial ownership of the stock at all times and would receive the vast majority of the stock sale proceeds. For example, one of Borden's customers allegedly received over $15 million in stock sale proceeds from Borden in less than three years. The SEC's complaint, filed in federal district court in the Eastern District of New York, charges Borden with violating the securities registration provisions of Section 15(a)(1) of the Securities Exchange Act of 1934. Without admitting or denying the allegations, Borden consented to the entry of a final judgment permanently enjoining him from future violations of the charged provisions. In addition, Borden consented to a penny stock bar. Borden agreed to pay a $70,000 civil penalty, $231,363 in disgorgement, and $33,907 in prejudgment interest. The settlement is subject to court approval. The SEC's case is being handled by Nita Klunder, David D'Addio, and Paul Block of the Boston Regional Office. SEC Complaint