Benjamin Ballout; Mohamed Zayed
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26331 / June 20, 2025
Securities and Exchange Commission v. Benjamin Ballout, Mohamed Zayed, and William Fielding, No. 9:24-81170-CV (S.D. Fla. filed Sept. 23, 2024)
SEC Obtains Final Judgments in Penny-Stock Fraud Scheme
On June 11, 2025, the Securities and Exchange Commission obtained final judgments against defendants Benjamin Ballout and Mohamed Zayed for their roles in a fraudulent scheme to pump and dump the publicly traded stock of Enerkon Solar International, Inc.
The SEC’s complaint alleged, among other things, that Ballout inflated Enerkon’s stock prices primarily through false and misleading statements and omissions in public statements and disclosures to investors. As alleged, with Ballout’s help, William Fielding and Zayed then profited from the scheme through the conversion of a bogus promissory note to Enerkon stock, which Fielding sold to a third party at inflated prices.
On November 19, 2024, the Court previously entered a final judgment by consent against William Fielding. The entry of the final judgments against Ballout and Zayed resolves all claims arising out of the SEC’s complaint in this matter.
On May 8, 2025, the Court granted the SEC’s motion for summary judgment on all claims against Ballout and Zayed. On June 11, 2025, the Court entered the final judgments against Ballout and Zayed, ordering: (a)Ballout and Zayed to each pay a civil penalty of $460,928; and (b) Zayed to pay disgorgement of $96,000 plus prejudgment interest of $25,288.33. The final judgments also permanently enjoined (a) Ballout and Zayed from future violations of the antifraud provisions that they violated under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and Section 17(a) of the Securities Act of 1933; (b) Ballout and Zayed from participating in an offering of penny stock; and (c) Ballout from serving as an officer or director of a public company.
The litigation was led by Pat Disbennett and supervised by Keefe Bernstein of the SEC’s Fort Worth Regional Office.