2020-06-10 sec-litreleases litigation_release 65 KB 2,242 chars

SEC v. Jason C. Nielsen, No. LR-24832, Northern District of California (June 10, 2020) — Press Release

raw: Jason C. Nielsen

Jason C. Nielsen, No. 5:20-cv-03788 (June 10, 2020)

Caption
Securities and Exchange Commission v. Nielsen
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summary

Jason C

paragraph

Jason C. Nielsen, a California trader, is accused of conducting a fraudulent pump-and-dump scheme involving Arrayit Corporation securities, making false claims about the company's COVID-19 blood test. Nielsen allegedly made approximately $137,000 in six weeks by posting misleading statements online and using "spoofing" tactics to create a false impression of high demand. He is charged with violating multiple securities laws and faces charges of permanent injunctions, civil money penalties, a penny stock bar, and disgorgement with prejudgment interest. The outcome is pending as the litigation continues.

narrative

Jason C. Nielsen, a California trader, is accused of conducting a fraudulent pump-and-dump scheme involving Arrayit Corporation securities, making false claims about the company's COVID-19 blood test. Nielsen allegedly made approximately $137,000 in six weeks by posting misleading statements online and using "spoofing" tactics to create a false impression of high demand. He is charged with violating multiple securities laws and faces charges of permanent injunctions, civil money penalties, a penny stock bar, and disgorgement with prejudgment interest. The outcome is pending as the litigation continues. The SEC charged Santa Cruz‑based penny‑stock trader Jason C. Nielsen with running a manipulative pump‑and‑dump scheme on Arrayit Corporation shares, falsely claiming the biotech firm had an “approved” COVID‑19 blood test and using spoofing tactics to create the illusion of demand. Between early March and mid‑April 2020, Nielsen posted hundreds of misleading messages in an online forum, concealed his large position, and profited about $137,000 before trading in Arrayit was temporarily halted. The complaint alleges violations of Section 17(a) of the Securities Act of 1933, Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934, and Rule 10b‑5, and seeks permanent injunctions, civil penalties, disgorgement with prejudgment interest and a penny‑stock bar. The case is pending in the U.S. District Court for the Northern District of California; no final resolution has been reached.

Enriched metadata

Scheme
pump-and-dump (100%)
Court
Northern District of California
Case No.
5:20-cv-03788
Victim loss
$137,000
Entity
Jason C. Nielsen
Classified pump-and-dump(confidence 100%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. 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
nielsenjason nielsensecuritiesstocksecurities exchangejasonsec'sarrayitjune securitiesexchange commissionpenny stockfalse assertionapproved covid-purchase sharesarrayit stock

Exhibits & Attached Documents (1)

Extracted insights

Dollar amounts 1
  • $137K $137,000 $100K–$1M
Entities 7
  • company company
  • person false assertion
  • scheme_term fraudulent pump-and-dump scheme
  • person jason c. nielsen
  • person manipulative trading scheme
  • person misleading statements
  • agency Securities and Exchange Commission
Triples 24
  • Securities and Exchange Commission charged Jason C. Nielsen
  • Jason C. Nielsen engaged in manipulative trading scheme
  • Jason C. Nielsen made hundreds of misleading statements
  • Jason C. Nielsen asserted company had developed an 'approved' COVID-19 blood test
  • Securities and Exchange Commission v. Jason C. Nielsen filed June 9, 2020
  • Securities and Exchange Commission charged Jason C. Nielsen
  • Jason C. Nielsen engaged in manipulative trading scheme
  • Jason C. Nielsen conducted fraudulent pump-and-dump scheme
  • Jason C. Nielsen made misleading statements
  • Jason C. Nielsen asserted false assertion
  • company developed COVID-19 blood test
  • Securities and Exchange Commission charged Jason C. Nielsen, a penny stock trader in Santa Cruz, California, with conducting a fraudulent pump-and-dump scheme in the stock of a biotechnology company by making hundreds of misleading statements in an online investment forum, including a false assertion that the company had developed an 'approved' COVID-19 blood test
  • Securities and Exchange Commission charged Jason C. Nielsen
  • Jason C. Nielsen engaged in manipulative trading scheme
  • Jason C. Nielsen conducted fraudulent pump-and-dump scheme
  • Jason C. Nielsen made misleading statements
  • Jason C. Nielsen asserted company had developed approved COVID-19 blood test
  • Securities and Exchange Commission filed Securities and Exchange Commission v. Jason C. Nielsen
  • Jason C. Nielsen charged with conducting a fraudulent pump-and-dump scheme
  • Securities and Exchange Commission charged Jason C. Nielsen
  • Jason C. Nielsen made hundreds of misleading statements in an online investment forum
  • Jason C. Nielsen asserted the company had developed an approved COVID-19 blood test
  • Securities and Exchange Commission filed Securities and Exchange Commission v. Jason C. Nielsen, No. 5:20-cv-03788
  • Securities and Exchange Commission announced Litigation Release No. 24832
PDF (from attached: complaint)
SEC v. JASON C. NIELSEN · Source
Text layers
Extracted body text (2,242c) 
SEC Charges California Trader Engaged in Manipulative Trading Scheme Involving Covid-19 Claims Litigation Release No. 24832 / June 10, 2020 Securities and Exchange Commission v. Jason C. Nielsen, No. 5:20-cv-03788 (N.D. Cal. filed June 9, 2020) The Securities and Exchange Commission today charged a penny stock trader in Santa Cruz, California, with conducting a fraudulent pump-and-dump scheme in the stock of a biotechnology company by making hundreds of misleading statements in an online investment forum, including a false assertion that the company had developed an "approved" COVID-19 blood test. According to the SEC's complaint, beginning around March 2, 2020, Jason C. Nielsen attempted to drive the stock price of Arrayit Corporation securities higher using online posts encouraging investors to purchase shares, including numerous messages repeating the 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. The SEC's complaint, filed in the U.S. District Court for the Northern District of California, charges Nielsen with violating Section 17(a) of the Securities Act of 1933, Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and seeks permanent injunctions, civil money penalties, a penny stock bar, and disgorgement with prejudgment interest. The SEC's investigation was conducted by Fitzann R. Reid and John K. Han, and supervised by Jason H. Lee and Monique C. Winkler of the San Francisco Regional Office. The litigation against Nielsen will be led by Mr. Han and Ms. Reid. The SEC's investigation is continuing. SEC Complaint
OCR text (2,242c · html-text · 99% conf) 
SEC Charges California Trader Engaged in Manipulative Trading Scheme Involving Covid-19 Claims Litigation Release No. 24832 / June 10, 2020 Securities and Exchange Commission v. Jason C. Nielsen, No. 5:20-cv-03788 (N.D. Cal. filed June 9, 2020) The Securities and Exchange Commission today charged a penny stock trader in Santa Cruz, California, with conducting a fraudulent pump-and-dump scheme in the stock of a biotechnology company by making hundreds of misleading statements in an online investment forum, including a false assertion that the company had developed an "approved" COVID-19 blood test. According to the SEC's complaint, beginning around March 2, 2020, Jason C. Nielsen attempted to drive the stock price of Arrayit Corporation securities higher using online posts encouraging investors to purchase shares, including numerous messages repeating the 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. The SEC's complaint, filed in the U.S. District Court for the Northern District of California, charges Nielsen with violating Section 17(a) of the Securities Act of 1933, Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and seeks permanent injunctions, civil money penalties, a penny stock bar, and disgorgement with prejudgment interest. The SEC's investigation was conducted by Fitzann R. Reid and John K. Han, and supervised by Jason H. Lee and Monique C. Winkler of the San Francisco Regional Office. The litigation against Nielsen will be led by Mr. Han and Ms. Reid. The SEC's investigation is continuing. SEC Complaint

Related documents (1)