Breadcrumb, Inc.


Litigation Release No. 23362 / September 25, 2015

Securities and Exchange Commission v., Inc., Civil Action No. 04-CV-4057 (E.D.N.Y.)

Court Imposes Over $5 Million in Monetary Relief, an Officer and Director Bar, and Permanent Injunctions Against Former Chairman of a Failed Internet Startup Who Committed Securities Fraud and IIIegally Sold Unregistered Securities

On Thursday, September 3, 2015, United States District Court Judge Denis R. Hurley of the United States District Court for the Eastern District of New York issued an order and judgment imposing relief against Defendant Anthony Knight, the former Chairman of failed Long Island-based internet startup,, Inc. The Commission's complaint alleged that from the fall of 1999 until the summer of 2000, iShop, Knight and others conducted an unregistered offering of securities and fraudulent scheme that defrauded over 350 investors who invested approximately $2.3 million. On October 14, 2014, a federal jury found Knight liable for violating Sections 5 and 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder.

Judge Hurley ordered Knight to pay $2.3 million in disgorgement, over $2.5 million of prejudgment interest, and a $330,000 civil penalty.  Pursuant to Section 21(d) of the Exchange Act, the Court also barred Knight from serving as an officer or director of a public company, and enjoined Knight from committing any further violations of Sections 5 and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.

Anthony Knight, a/k/a Ali Haghighi, age 49, was at the time of the conduct a resident of Great Neck, New York, and is currently a resident of San Diego, California.

For information about earlier developments in this matter, see Litigation Release No. 19892 (Oct. 30, 2006), Litigation Release No. 18890 (Sept. 20, 2004), and Litigation Release No. 23112 (Oct. 15, 2014).


Last Reviewed or Updated: June 27, 2023