U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22865 / November 7, 2013
Securities and Exchange Commission v. Nicholas Louis Geranio, et al., Civil Action No. CV12-04257 (C.D. Calif. May 16, 2012)
SEC Obtains Final Judgment Against Defendants Charged with Perpetrating $35 Million International Boiler Room Scheme
The Securities and Exchange Commission announced that the United States District Court for the Central District of California entered a final, settled judgment against defendants Nicholas Louis Geranio, The Good One, Inc., and Kaleidoscope Real Estate, Inc. for their roles in a $35 million scheme to manipulate the market and to profit from the issuance and sale of certain U.S. companies' stock through offshore boiler rooms.
Pursuant to the judgment issued on November 1, 2013, the court ordered Geranio, The Good One and Kaleidoscope jointly and severally to pay disgorgement of $2,135,000, prejudgment interest thereon of $427,270, and a civil penalty of $500,000, barred them from participating in any offering of penny stock, and permanently enjoined them from violations of the antifraud provisions of the federal securities laws. The judgment also barred Geranio from acting as an officer or director of any public company and ordered him to pay an additional $279,000 in disgorgement plus prejudgment interest thereon of $55,835, representing monies received by another defendant, Keith Field, provided that the SEC shall not obtain double recovery from Geranio and Field. Finally, the judgment ordered relief defendant BWRE Hawaii, LLC to pay, jointly and severally with Geranio, The Good One, and Kaleidoscope, an additional $240,000 in disgorgement plus prejudgment interest thereon of $55,295.
The SEC's complaint, filed on May 16, 2012, alleged that defendants' scheme worked as follows:
For further information, please see Litigation Release Number 22370 (May 16, 2012).