U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20777 / October 8, 2008
Securities and Exchange Commission v. Jason Jadidian, Civil Action No. 08 Civ. 8079 (PGG) (S.D.N.Y.)
SEC Charges a Stock Promoter with Market Manipulation
The Securities and Exchange Commission announced today that on September 18, 2008 the Commission charged a stock promoter with engaging in a fraudulent broker bribery scheme designed to manipulate the market for the common stock of Tecton, Corp. ("TTNC").
The complaint, filed on September 18, 2008 in federal court in Manhattan, alleges that beginning in at least April 2008, Jason Jadidian engaged in an undisclosed kickback arrangement with an individual who claimed to represent a group of registered representatives with trading discretion over the accounts of wealthy customers. Unbeknownst to Jadidian, the individual actually was an undercover FBI agent. Jadidian promised to pay a 30% kickback to the agent and the registered representatives he purported to represent in exchange for the purchase of TTNC stock through the customers' accounts.
The complaint further alleges that on May 1, 2008, Jadidian instructed the agent to purchase approximately 80,000 shares of TTNC stock for a total of approximately $18,600 through matched trades using detailed instructions concerning the size, price and timing of the purchase orders. Thereafter, Jadidian paid a $5,000 bribe to the agent.
The complaint charges Jadidian with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5. The Commission seeks permanent injunctive relief, disgorgement of ill-gotten gains, if any, plus pre-judgment interest, civil penalties, and a judgment prohibiting Jadidian from participating in any offering of penny stock.
The Commission acknowledges assistance provided by the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation in this matter.