SEC v. Jeremy Koski, No. LR-25820, Southern District of New York (Sept. 1, 2023) — Press Release
raw: Jeremy Koski
Jeremy Koski, No. LR-25820 (S.D.N.Y. Sept. 1, 2023)
summary
The SEC charged Hawaii resident Jeremy Koski with securities fraud for manipulating COTRP stock prices through fake internet posts, seeking an injunction and civil penalties.
paragraph
Jeremy Koski allegedly used anonymous internet personas to disseminate fabricated U.S. Bank notices and phony press releases to inflate the price of J.C. Penney-backed debentures. These fraudulent posts, which included false claims of cryptocurrency conversion, triggered a 75% price spike in COTRP. The SEC has charged Koski with violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act.
narrative
The Securities and Exchange Commission has charged Jeremy Koski with securities fraud for orchestrating a market manipulation scheme involving J.C. Penney Company, Inc. debentures (COTRP). Koski allegedly used various anonymous usernames on internet message boards to post fabricated documents, including fake U.S. Bank letterhead notices claiming early redemption of debentures. He also disseminated phony press releases falsely announcing that COTRP would convert to a cryptocurrency to recover face value. These deceptive actions caused a 75% spike in the trading price of COTRP as Koski sought to increase the value of his large position. The SEC's complaint, filed in the Southern District of New York, alleges violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934. The agency is seeking a permanent injunction, civil monetary penalties, and a penny stock bar against the Hawaii resident.
Classified market-manipulation(confidence 100%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →
Parties
Securities and Exchange CommissionJeremy Koski
Keywords
koskisecuritiesjeremy koskisecurities exchangeexchange commissioncotrpjeremyexchangecommissionseptemberseptember securitiescommission jeremyinternet messagekoski fabricatedposted fake
Exhibits & Attached Documents (1)
Extracted insights
Entities 6
- person Christopher Colorado
- person Jeremy Koski
- person mariel bronen
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
- person tejal d. shah
Triples 14
- Securities And Exchange Commission charged Jeremy Koski
- Jeremy Koski manipulated trading market for structured equity securities
- Jeremy Koski fabricated fake documents on internet message boards
- Jeremy Koski posted fake notices on U.S. Bank letterhead
- Jeremy Koski disseminated phony Cotrp press releases
- Securities And Exchange Commission seeks permanent injunction against future violations
- Securities And Exchange Commission filed complaint in the U.S. District Court for the Southern District of New York
- Mariel Bronen conducted investigation of this matter
- Tejal D. Shah supervised investigation of this matter
- Christopher Colorado led litigation
- Securities And Exchange Commission appreciates assistance of the U.S. Attorney's Office for the Southern District of New York
- Jeremy Koski violated Section 17(a) of the Securities Act of 1933
- Jeremy Koski violated Section 10(b) the Securities Exchange Act of 1934
- Jeremy Koski violated Rule 10b-5
PDF (from attached: complaint)
Text layers
Extracted body text (2,323c)
U.S SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25820 / September 1, 2023 Securities and Exchange Commission v. Jeremy Koski, No. 23-civ-07779 (S.D.N.Y filed September 1, 2023) SEC Charges Internet Message Board User in Alleged Market Manipulation Scheme On September 1, 2023, the Securities and Exchange Commission charged Jeremy Koski, a resident of Hawaii, with securities fraud in connection with his manipulation of the trading market for structured equity securities backed by certain J.C. Penney Company, Inc. debentures ("JCP Debentures"), which trade over the counter under the symbol COTRP. The Commission alleges that Koski fabricated and anonymously posted fake documents on internet message boards under different usernames in order to boost the trading price of COTRP and increase the value of his large position in the stock. As alleged in the SEC's complaint, in May 2021, Koski posted fake notices on U.S. Bank letterhead falsely stating that the JCP Debentures would be redeemed early at their full value, causing a 75% spike in the price of COTRP. In September and November 2021, Koski also allegedly fabricated and disseminated phony COTRP press releases purporting to announce that "COTRP will be the first publicly traded security fund to convert to a cryptocurrency," and that this "cryptocurrency conversion" would "allow the fund to recover the face value of $25 as it opens up to a new world of digitized currency." As alleged, Koski knew that these statements were false. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Koski with violating Section 17(a) of the Securities Act of 1933, Section 10(b) the Securities Exchange Act of 1934 and Rule 10b-5. The complaint seeks a permanent injunction against future violations of these antifraud provisions, a conduct-based injunction, civil monetary penalties, and a penny stock bar. The investigation of this matter was conducted by Mariel Bronen, Daphne Downes and George Stepaniuk and was supervised by Tejal D. Shah of the SEC's New York Regional Office. The litigation is being led by Christopher Colorado and Ms. Bronen. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation. SEC ComplaintOCR text (2,323c · html-text · 99% conf)
U.S SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25820 / September 1, 2023 Securities and Exchange Commission v. Jeremy Koski, No. 23-civ-07779 (S.D.N.Y filed September 1, 2023) SEC Charges Internet Message Board User in Alleged Market Manipulation Scheme On September 1, 2023, the Securities and Exchange Commission charged Jeremy Koski, a resident of Hawaii, with securities fraud in connection with his manipulation of the trading market for structured equity securities backed by certain J.C. Penney Company, Inc. debentures ("JCP Debentures"), which trade over the counter under the symbol COTRP. The Commission alleges that Koski fabricated and anonymously posted fake documents on internet message boards under different usernames in order to boost the trading price of COTRP and increase the value of his large position in the stock. As alleged in the SEC's complaint, in May 2021, Koski posted fake notices on U.S. Bank letterhead falsely stating that the JCP Debentures would be redeemed early at their full value, causing a 75% spike in the price of COTRP. In September and November 2021, Koski also allegedly fabricated and disseminated phony COTRP press releases purporting to announce that "COTRP will be the first publicly traded security fund to convert to a cryptocurrency," and that this "cryptocurrency conversion" would "allow the fund to recover the face value of $25 as it opens up to a new world of digitized currency." As alleged, Koski knew that these statements were false. The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Koski with violating Section 17(a) of the Securities Act of 1933, Section 10(b) the Securities Exchange Act of 1934 and Rule 10b-5. The complaint seeks a permanent injunction against future violations of these antifraud provisions, a conduct-based injunction, civil monetary penalties, and a penny stock bar. The investigation of this matter was conducted by Mariel Bronen, Daphne Downes and George Stepaniuk and was supervised by Tejal D. Shah of the SEC's New York Regional Office. The litigation is being led by Christopher Colorado and Ms. Bronen. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation. SEC Complaint