The Securities and Exchange Commission announced that it filed settled charges against Alexander Kon of Overland Park, Kansas for violating a Commission-ordered penny stock suspension, which prohibited Kon from participating in any offering of a penny stock during the period May 30, 2018 through May 30, 2019.

The SEC's complaint, filed in the United States District Court for the Southern District of Florida, alleges that during the period Kon was suspended from participating in any offering of a penny stock, Kon promoted microcap stocks through his own website, recruited other promoters to tout penny stocks, received compensation for those activities and compensated other promoters.

The SEC's complaint charges Kon with violating Section 15(b)(6)(B)(i) of the Securities Exchange Act of 1934. Without admitting or denying the SEC's allegations, Kon has agreed to a permanent penny stock bar, to pay disgorgement, prejudgment interest, and a civil penalty in amounts to be determined by the Court, and to comply with an undertaking to pay the outstanding balance of a prior judgment imposed in connection with the prior SEC action against Kon suspending him from participating in any offering of a penny stock. The proposed settlement is subject to court approval.

The SEC's investigation was conducted by the Enforcement Division's Microcap Fraud Task Force, and supervised by Elisha L. Frank, Andrew O. Schiff, and Glenn S. Gordon of the Miami Regional Office. Mr. Schiff will lead the litigation. The SEC appreciates the assistance of the British Columbia Securities Commission.