U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 21919 / April 6, 2011
Securities and Exchange Commission v. Jason Jadidian, Civil Action No. 08 Civ. 8079 (PGG) (S.D.N.Y.)
COURT FINES PROMOTER JASON JADIDIAN $50,000 FOR TECTON STOCK MANIPULATION SCHEME
The Securities and Exchange Commission today announced that on March 31, 2011, the Honorable Paul G. Gardephe of the United States District Court for the Southern District of New York granted in part the Commission’s motion for summary judgment against defendant Jason Jadidian, and issued a final judgment finding Jadidian liable for violations of Sections 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The court imposed a $50,000 civil penalty against Jadidian, a resident of Cliffside Park, New Jersey.
The Commission’s complaint, filed on September 18, 2008, alleged that Jadidian, a stock promoter, engaged in a fraudulent broker-bribery scheme designed to manipulate the market for the common stock of Tecton Corporation. The complaint charged Jadidian with violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.
After considering the undisputed facts, the court found a clear record of Jadidian’s violations of the anti-fraud provisions of the federal securities laws and imposed a $50,000 civil penalty. The court declined to impose injunctive relief or issue a penny stock bar.
See Litigation Release No. 20777 (Oct. 8, 2008).