U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21505 / April 26, 2010
Securities and Exchange Commission v. Gary J. Gross, Case No. 08-81039-CIV-Marra/Johnson (S.D. Fla.)
Court Enters Final Judgment of Disgorgement and Civil Penalty Agaisnt Defendant Gary J. Gross
The Commission announced that on November 20, 2009, the United States District Court for the Southern District of Florida entered a Final Judgment of Disgorgement and Civil Penalty as to Defendant Gary J. Gross. The Final Judgment, entered by consent, orders Gross to pay $789,879 in disgorgement, $259,704.70 in prejudgment interest, and a civil penalty of $130,000.
On November 25, 2008, the Court had entered a Judgment, by consent, enjoining Gross from violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934, and permanently barring him from participating in any future offerings of penny stock.
The Commission began this action by filing its complaint against Gross on September 22, 2008. The complaint alleged that Gross, a former registered representative, recommended unsuitable securities and engaged in unauthorized and often unsuitable trades in his customers' accounts. Many of these customers were elderly, unsophisticated investors who wanted to preserve their investment principal and grow their portfolios while investing with minimal risk.
For additional information, see Litigation Release No. 20732 (September 22, 2008).