U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22532 / November 16, 2012
Securities and Exchange Commission v. Bruce L. Grossman and Jonathan R. Curshen, Civil Action No. 08-cv-7893 (PGG) (SDNY)
COURT ENTERS FINAL JUDGMENT BY CONSENT AGAINST SEC DEFENDANT BRUCE GROSSMAN
The Securities and Exchange Commission announced that on November 13, 2012, the Honorable Paul G. Gardephe, United States District Court Judge for the Southern District of New York, entered a final judgment by consent against Defendant Bruce Grossman. The final judgment permanently enjoins Grossman from future violations of Sections 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and orders Grossman liable for disgorgement of $76,000, which liability is deemed fully satisfied by Grossman's criminal forfeiture order in United States v. Grossman, 09-cr-136 (PGG) (SDNY). The final judgment also bars Grossman from participating in an offering of penny stock.
On September 10, 2008, the SEC filed its complaint against Bruce Grossman and Jonathan Curshen (collectively, the "Defendants") alleging that from at least June 2008, the Defendants engaged in a fraudulent broker bribery scheme designed to manipulate the market for the common stock of Industrial Biotechnology Corp. The complaint alleges that the Defendants engaged in an undisclosed kickback arrangement with an individual who claimed to represent a group of registered representatives with trading discretion over the accounts of wealthy customers.
For further information, please see Litigation Release Number 20712 (September 11, 2008) [SEC Charges Two Stock Promoters with Market Manipulation]
The SEC acknowledges the assistance of the United States Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation in this matter.