U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20190 / July 10, 2007
SEC v. Aleksey Kamardin, Civil Action No. 8:07-CV-159-T-24-MAP (M.D. Fla.)
Court Enters Default Judgment Against Aleksey Kamardin for Scheme to Intrude Into Online Accounts, Manipulate Market
The United States Securities and Exchange Commission announced that on June 20, 2007, the Honorable Susan C. Bucklew, United States District Judge for the Middle District of Florida, entered a default judgment against twenty-one year old Aleksey Kamardin.
The Commission's Complaint, which was filed on January 25, 2007, alleges that between July 13 and August 25, 2006, Kamardin, or with others acting in concert, commandeered the online trading accounts of unwitting investors at various broker-dealers, liquidated existing equity positions and, using the resulting proceeds, purchased thinly traded stocks in order to create the appearance of trading activity and pump up the price of the stocks. The complaint further alleges that in seventeen instances, Kamardin, in his own account, bought shares in the thinly traded issuer just prior to or at the same time that compromised accounts were made to buy shares, creating the false appearance of market activity. Shortly after the intrusions, Kamardin sold all of his shares at the inflated prices. In all but three of these instances, Kamardin realized a profit from his trading, netting a total profit of $82,960.
The judgment permanently enjoins Kamardin with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment also orders Kamardin to pay $82,960.16 in disgorgement together with $5,085.50 of prejudgment interest thereon, and $130,000 in civil penalties.
The SEC's Office of Investor Education and Assistance has previously issued an investor alert available on the SEC's website, which provides tips for avoiding becoming a victim of an online intrusion. See http://www.sec.gov/investor/pubs/onlinebrokerage.htm.
The Commission acknowledges the assistance of the NASD in this matter. For further information, see Litigation Release No. 19981 (January 25, 2007).