2024-04-03 sec-litreleases litigation_release 64 KB 2,051 chars

SEC v. Ronald Heineman, No. LR-25965, Eastern District of New York (Apr. 3, 2024) — Press Release

raw: Ronald Heineman

Ronald Heineman, No. 1:14-cv-4346 (E.D.N.Y. Apr. 3, 2024)

Caption
Securities and Exchange Commission v. DiScala et al., Civil Action No. 1:14-cv-4346
Source JSON
summary

Ronald Heineman, former CCO of Halcyon Cabot Partners, obtained a final judgment for his role in a CodeSmart securities price manipulation scheme and agreed to pay $25,000 in penalties.

paragraph

Ronald Heineman was charged with violating the Securities Act of 1933 and the Securities Exchange Act of 1934 for his role in manipulating CodeSmart Holdings, Inc. securities. As the chief compliance officer of Halcyon Cabot Partners, he allegedly ignored red flags and engaged in matched trading to inflate stock prices. The final judgment requires Heineman to pay $25,000 in civil monetary penalties and face a permanent injunction.

narrative

The SEC obtained a final judgment against Ronald Heineman, the former chief compliance officer of Halcyon Cabot Partners, Ltd., regarding a scheme to manipulate CodeSmart Holdings, Inc. securities. Starting in 2013, Heineman allegedly ignored red flags and engaged in matched trading to inflate CodeSmart's share prices while facilitating sales from scheme principals to Halcyon clients. He faced charges for violating Section 17(a) of the Securities Act of 1933 and Sections 9(a) and 10(b) of the Securities Exchange Act of 1934. Without admitting or denying the allegations, Heineman consented to a permanent injunction against future violations. He was also ordered to pay $25,000 in civil monetary penalties. The final judgment was entered by the U.S. District Court for the Eastern District of New York on April 1, 2024.

Enriched metadata

Scheme
market-manipulation (95%)
Court
Eastern District of New York
Case No.
1:14-cv-4346
Outcome
settled
Settlement
$25,000
Entity
Ronald Heineman
Classified market-manipulation(confidence 95%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →
Statutes
Section 17(a) of the Securities ActSections 9(a) and 10(b) of the Securities Exchange ActSections 9(a) and 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionDiScalaRonald Heineman
Keywords
heinemansecsecuritiescodesmartronald heinemansecurities exchangehalcyonfinalexchange commissionfinal againstentered finalcivil monetarymonetary penaltiesronaldexchange

Extracted insights

Dollar amounts 1
  • $25K $25,000 $10K–$100K
Entities 7
  • person federal securities laws
  • person final judgment
  • person ronald heineman
  • agency Securities and Exchange Commission
  • organization Securities and Exchange Commission
  • court u.s. district court for the eastern district of new york
  • organization U.S. District Court For The Eastern District Of New York
Triples 9
  • Securities And Exchange Commission obtains Final Judgment Against CodeSmart Defendant
  • Ronald Heineman violated Federal Securities Laws
  • Ronald Heineman paid $25,000 In Civil Monetary Penalties
  • Securities And Exchange Commission alleged Heineman Ignored Red Flags Related To Trading In CodeSmart
  • Ronald Heineman engaged Matched Trading To Inflate Price Of CodeSmart Securities
  • Securities And Exchange Commission charged Heineman With Violating Section 17(a) Of The Securities Act Of 1933
  • Ronald Heineman consented Final Judgment
  • U.S. District Court For The Eastern District Of New York entered Final Judgment Against Ronald Heineman
  • Securities And Exchange Commission appreciates Assistance Of The U.S. Attorney’s Office For The Eastern District Of New York And The FBI
View original SEC litigation releasesec.gov
Extracted body text (2,051c) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25965 / April 3, 2024 Securities and Exchange Commission v. DiScala et al., Civil Action No. 1:14-cv-4346 (E.D.N.Y. filed July 17, 2014; amended Jan. 19, 2016) SEC Obtains Final Judgment Against CodeSmart Defendant for Role in Alleged Offering Fraud On April 1, 2024, the U.S. District Court for the Eastern District of New York entered a final judgment against Ronald Heineman, enjoining him from violating certain provisions of the federal securities laws and ordering him to pay civil monetary penalties. According to the SEC’s complaint, starting in 2013, Heineman was involved in a scheme to manipulate the price of the securities of CodeSmart Holdings, Inc. (“CodeSmart”). The SEC alleged that Heineman, as chief compliance officer of Halcyon Cabot Partners, Ltd. (“Halcyon”), ignored red flags related to trading in CodeSmart and the conduct of one of Halcyon’s registered representatives. Specifically, the SEC alleged that Heineman was aware one of the principals of the scheme was using Halcyon to facilitate his sale of CodeSmart shares while Halcyon clients were purchasing those shares. The SEC further alleged that Heineman engaged in matched trading for the purpose of inflating the price of CodeSmart securities. The SEC’s complaint charged Heineman with violating Section 17(a) of the Securities Act of 1933 and Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Heineman consented to a final judgment in which he agreed to be permanently enjoined from violations of the charged provisions. He agreed to pay $25,000 in civil monetary penalties. On April 1, 2024, the Court entered the final judgment. The SEC’s litigation is being handled by Todd Brody and Lindsay Moilanen of the New York Regional Office and is being supervised by Sheldon L. Pollock and Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York and the FBI.
OCR text (2,051c · html-text · 99% conf) 
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25965 / April 3, 2024 Securities and Exchange Commission v. DiScala et al., Civil Action No. 1:14-cv-4346 (E.D.N.Y. filed July 17, 2014; amended Jan. 19, 2016) SEC Obtains Final Judgment Against CodeSmart Defendant for Role in Alleged Offering Fraud On April 1, 2024, the U.S. District Court for the Eastern District of New York entered a final judgment against Ronald Heineman, enjoining him from violating certain provisions of the federal securities laws and ordering him to pay civil monetary penalties. According to the SEC’s complaint, starting in 2013, Heineman was involved in a scheme to manipulate the price of the securities of CodeSmart Holdings, Inc. (“CodeSmart”). The SEC alleged that Heineman, as chief compliance officer of Halcyon Cabot Partners, Ltd. (“Halcyon”), ignored red flags related to trading in CodeSmart and the conduct of one of Halcyon’s registered representatives. Specifically, the SEC alleged that Heineman was aware one of the principals of the scheme was using Halcyon to facilitate his sale of CodeSmart shares while Halcyon clients were purchasing those shares. The SEC further alleged that Heineman engaged in matched trading for the purpose of inflating the price of CodeSmart securities. The SEC’s complaint charged Heineman with violating Section 17(a) of the Securities Act of 1933 and Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Without admitting or denying the allegations, Heineman consented to a final judgment in which he agreed to be permanently enjoined from violations of the charged provisions. He agreed to pay $25,000 in civil monetary penalties. On April 1, 2024, the Court entered the final judgment. The SEC’s litigation is being handled by Todd Brody and Lindsay Moilanen of the New York Regional Office and is being supervised by Sheldon L. Pollock and Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York and the FBI.