SEC v. Jason C. Nielsen, No. LR-25964, Northern District of California (Apr. 3, 2024) — Press Release
raw: Jason Nielsen
Jason Nielsen, No. 5:20-cv-03788 (Apr. 3, 2024)
summary
The SEC obtained a final judgment against California trader Jason C. Nielsen for a manipulative trading scheme involving false COVID-19 claims and spoofing of Arrayit Corporation securities.
paragraph
Jason C. Nielsen engaged in a scheme to inflate Arrayit Corporation stock prices using false claims about a COVID-19 test and spoofing tactics. The manipulation resulted in Nielsen earning approximately $137,000 over a six-week period. Without admitting or denying the allegations, Nielsen consented to a final judgment requiring him to pay $149,915 in disgorgement and prejudgment interest.
narrative
The SEC obtained a final judgment against California trader Jason C. Nielsen for orchestrating a manipulative trading scheme involving Arrayit Corporation securities. Beginning in March 2020, Nielsen used online posts to spread false assertions regarding an approved COVID-19 test to drive up stock prices. He also employed 'spoofing' tactics by placing and canceling large orders to create a false impression of high demand. Through these actions, Nielsen earned approximately $137,000 in six weeks before the SEC temporarily suspended trading in the securities. Without admitting or denying the allegations, Nielsen consented to a judgment that includes a permanent injunction against violating federal securities laws and participating in penny stock offerings. Additionally, he was ordered to pay $149,915 in disgorgement and prejudgment interest.
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)(2) and 10(b) of the Securities Exchange ActSections 9(a)(2) and 10(b) of the Securities Exchange ActSections 9(a)(2) and 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionJason NielsenUSA
Keywords
nielsensecuritiesjason nielsensecurities exchangeexchangeexchange commissionjasonfinalarrayitstockfinal againstpurchase sharesarrayit stockpermanently enjoiningexchange exchange
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 2
- $150K $149,915 $100K–$1M
- $137K $137,000 $100K–$1M
Entities 3
- person jason c. nielsen
- person john han
- agency Securities and Exchange Commission
Triples 13
- U.S. Securities and Exchange Commission Obtains Final Judgment Against California Trader Engaged in Manipulative Trading Scheme Involving COVID-19 Claims
- SEC obtained a final judgment against Jason C. Nielsen
- Jason C. Nielsen attempted to drive the stock price of Arrayit Corporation securities higher using online posts encouraging investors to purchase shares
- Jason C. Nielsen repeating a false assertion regarding an approved COVID-19 test
- Jason C. Nielsen created the false impression of high demand for Arrayit stock by placing and subsequently canceling several large orders to purchase shares
- Jason C. Nielsen made approximately $137,000 in six weeks
- SEC temporarily suspended trading in Arrayit securities on April 13, 2020
- Jason C. Nielsen consented to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933
- Jason C. Nielsen consented to a final judgment ordering him to pay disgorgement and prejudgment interest in the amount of $149,915
- Jason C. Nielsen consented to a final judgment permanently enjoining him from participating in an offering of penny stock
- The litigation against Nielsen was led by John Han
- The litigation against Nielsen was supervised by Susan LaMarca and Jason H. Lee
- Susan LaMarca and Jason H. Lee are of the San Francisco Regional Office
PDF (from attached: judgment)
Text layers
Extracted body text (2,044c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25964 / April 3, 2024 Securities and Exchange Commission v. Jason Nielsen, 5:20-cv-03788 (N.D. Cal. filed June 9, 2020) SEC Obtains Final Judgment Against California Trader Engaged in Manipulative Trading Scheme Involving COVID-19 Claims On March 28, 2024, the Securities and Exchange Commission obtained a final judgment against Jason C. Nielsen. According to the SEC's complaint, beginning around March 2, 2020, Nielsen attempted to drive the stock price of Arrayit Corporation securities higher using online posts encouraging investors to purchase shares, including numerous messages repeating a false assertion regarding an approved COVID-19 test, without telling them about his large position in Arrayit stock or his plans to sell the shares while others were buying. Nielsen also allegedly created the false impression of high demand for Arrayit stock by placing and subsequently canceling several large orders to purchase shares in a tactic known as "spoofing." According to the SEC's complaint, Nielsen made approximately $137,000 in six weeks, but based on questions regarding the accuracy and adequacy of publicly available information concerning Arrayit, the SEC temporarily suspended trading in Arrayit securities on April 13, 2020, before Nielsen was able to profit further from the scheme. Without admitting or denying the allegations, Nielsen consented to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933, Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Exchange Act Rule 10b-5. Nielsen further consented to a final judgment: (1) ordering him to pay disgorgement and prejudgment interest in the amount of $149,915; and (2) permanently enjoining him from participating in an offering of penny stock. The litigation against Nielsen was led by John Han and was supervised by Susan LaMarca and Jason H. Lee, all of the San Francisco Regional Office. Final JudgmentOCR text (2,044c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25964 / April 3, 2024 Securities and Exchange Commission v. Jason Nielsen, 5:20-cv-03788 (N.D. Cal. filed June 9, 2020) SEC Obtains Final Judgment Against California Trader Engaged in Manipulative Trading Scheme Involving COVID-19 Claims On March 28, 2024, the Securities and Exchange Commission obtained a final judgment against Jason C. Nielsen. According to the SEC's complaint, beginning around March 2, 2020, Nielsen attempted to drive the stock price of Arrayit Corporation securities higher using online posts encouraging investors to purchase shares, including numerous messages repeating a false assertion regarding an approved COVID-19 test, without telling them about his large position in Arrayit stock or his plans to sell the shares while others were buying. Nielsen also allegedly created the false impression of high demand for Arrayit stock by placing and subsequently canceling several large orders to purchase shares in a tactic known as "spoofing." According to the SEC's complaint, Nielsen made approximately $137,000 in six weeks, but based on questions regarding the accuracy and adequacy of publicly available information concerning Arrayit, the SEC temporarily suspended trading in Arrayit securities on April 13, 2020, before Nielsen was able to profit further from the scheme. Without admitting or denying the allegations, Nielsen consented to the entry of a final judgment permanently enjoining him from violating Section 17(a) of the Securities Act of 1933, Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), and Exchange Act Rule 10b-5. Nielsen further consented to a final judgment: (1) ordering him to pay disgorgement and prejudgment interest in the amount of $149,915; and (2) permanently enjoining him from participating in an offering of penny stock. The litigation against Nielsen was led by John Han and was supervised by Susan LaMarca and Jason H. Lee, all of the San Francisco Regional Office. Final Judgment