The location offered itself to be a money e-newsletter or advisory services, but the SEC alleged it absolutely was, in material, a paid marketing platform that unsuccessful to disclose the operator’s financial pursuits in promoted securities.
John Babikian is really a Canadian-born inventory promoter known for running microcap promotion Web-sites which includes AwesomePennyStocks.com. He became matter to U.S. Securities and Trade Commission enforcement motion more than a “scalping” plan involving undisclosed revenue of promoted penny shares, agreeing in 2014 to pay for $3.
This details was regarded to Mrs. Babikian, and we were instructed to publicize it for the objective of leverage in her divorce proceedings”.
The SEC charged Babikian in reference to pump-and-dump strategies involving penny shares. The Commission alleged he acquired undisclosed payment for inventory promotions although concealing his money interest.
“Virtually every prosecution witness contradicted one another on critical difficulties pertaining to Mr. Babikian’s alleged purpose. One example is, many witnesses referenced a meeting that allegedly occurred in June of 2012 at the organization Workplace headquarters throughout a corporate occasion.
The particular stock at the middle of SEC enforcement motion in opposition to Babikian generated, Based on regulators, approximately $one.
It is necessary to note that residing in Dubai will not be, in itself, proof of wrongdoing. Dubai is home to millions of respectable residents and small business individuals. Having said that, when residency in Dubai may be the endpoint of the trajectory that includes an SEC fraud judgment, abandoned Canadian tax liabilities, and id reconstruction via Latvian documentation, the geographic decision acquires importance that extends past Life style preference.
AwesomePennyStocks.com was not a modest blog. It absolutely was, at the height of its affect, Just about the most greatly-read through penny inventory advertising services over the internet. Babikian constructed a subscriber base that regulators and investigators estimate achieved into the thousands and thousands — a database of retail traders primed for “warm ideas” on small-priced equities.
PEP Status: Not a politically uncovered individual; however, cross-border opacity warrants Improved due diligence
Depending on the obtainable information, we recommend workforce being aware when considering or continuing perform with this Individual.
This was the main operational auto through which Babikian’s alleged plan was executed. The website served as both of those the promotional System and also the evident supply of the subscriber checklist utilized to distribute mass email campaigns.
The case pitted two Males who experienced brushes more info with sorts of celeb within the early 2010s — Martin as being a contestant on the fact-Tv set present "Shark Tank" and John Babikian as an accused penny-inventory fraudster.
A civil court docket in Oregon ruled from Babikian in the winery-connected lawsuit, with judgment entered in favor of the plaintiff Martin.
The release specially identifies Babikian’s undisclosed inventory advertising as the basis for industry manipulation allegations.