U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22559 / December 6, 2012
SECURITIES AND EXCHANGE COMMISSION v. GLENN GROSSMAN, LAWRENCE STEVEN COHEN, SHAY KEREN, and JOHN ZANIC, Civil Action No. 08-cv-8078 (KMW) (SDNY)
COURT ENTERS FINAL JUDGMENT BY DEFAULT AGAINST SEC DEFENDANT JOHN ZANIC
The Securities and Exchange Commission announced that on December 5, 2012, the Honorable Kimba M. Wood, United States District Court Judge for the Southern District of New York, entered a final judgment by default against Defendant John Zanic. The final judgment permanently enjoins Zanic 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 permanently bars Zanic from participating in an offering of penny stock. The final judgment also holds Zanic liable for total combined disgorgement and prejudgment interest of $86,551.35 and a civil monetary penalty in the amount of $130,000.
On September 18, 2008, the SEC filed its complaint against Glenn Grossman, Lawrence Steven Cohen, Shay Keren, and John Zanic (collectively, the “Defendants”) alleging that from at least April 2008, the Defendants engaged in a fraudulent broker bribery scheme designed to manipulate the market for the common stock of Guyana Gold, 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 22498 (September 27, 2012) [Court Enters Final Judgments by Consent Against SEC Defendants Shay Keren and Lawrence Steven Cohen], Litigation Release Number 20776 (October 8, 2008) [SEC Charges Four Stock Promoters with Market Manipulation] and Litigation Release Number 22184 (December 9, 2011) [Court Enters Final Judgment by Consent Against SEC Defendant Glenn Grossman].
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.