DD Support Board and Research Team

[Renee]

SEC Obtains Final Judgments Against Participants in Illegal Microcap Securities Offerings:

https://www.sec.gov/litigation/litreleases/lr-25997

On May 2, 2024, the U.S. District Court for the Southern District of New York entered final consent judgments against two individuals and their related businesses that participated in illegal microcap securities offerings. Entry of the judgments, and the SEC’s consent to the dismissal of certain fraud claims, resolves all remaining claims in the SEC’s February 15, 2019 complaint against Magna Group, LLC, Magna Equities II, LLC, and MG Partners, Ltd (collectively, the “Magna Entities”), as well as Joshua Sason, the founder and owner of the Magna Entities, and Marc Manuel, the Magna Entities’ former head of research and due diligence. The complaint alleged, among other things, that those defendants participated in the offer and sale of certain securities without a registration statement or any applicable exemption to registration requirements.

Without admitting the allegations in the SEC’s complaint, Sason, Manuel, and the Magna Entities consented to the entry of final judgments that provide for the following relief:

Sason is permanently enjoined from violating Sections 5(a) and 5(c) of the Securities Act, and was ordered to pay disgorgement of $450,000 plus prejudgment interest of $38,610.54.
Manuel is permanently enjoined from violating Sections 5(a) and 5(c) of the Securities Act, was ordered to pay a civil monetary penalty of $90,000, and is barred from participating in any offering of a penny stock for two years.
Magna Group, LLC, is permanently enjoined from violating Sections 5(a), 5(c), and 17(a)(3) of the Securities Act, and was ordered to pay disgorgement of $394,032.86 plus prejudgment interest of $33,808.50, and a civil monetary penalty of $70,000.
Magna Equities II, LLC, is permanently enjoined from violating Sections 5(a) and 5(c) of the Securities Act, and was ordered to pay disgorgement of $692,983.57 plus prejudgment interest of $59,958.83, and a civil monetary penalty of $65,000.
MG Partners, Ltd, is permanently enjoined from violating Sections 5(a) and 5(c) of the Securities Act, and was ordered to pay disgorgement of $692,983.57 plus prejudgment interest of $59,958.83, and a civil monetary penalty of $65,000.