U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 22951 / March 26, 2014
Securities and Exchange Commission v. Bruce L. Grossman and Jonathan R. Curshen, Civil Action No. . 08-cv-7893 (PGG) (SDNY)
SEC Obtains Summary Judgment Against Defendant Jonathan Curshen in Market Manipulation Case
The Securities and Exchange Commission announced that on March 21, 2014, the Honorable Paul G. Gardephe, United States District Court Judge for the Southern District of New York, granted the Commission's motion for summary judgment against defendant Jonathan Curshen, permanently enjoining Curshen from future violations of Sections 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The Court also: (i) held Curshen jointly and severally liable with Defendant Bruce Grossman for $76,000 in disgorgement, plus $18,599.86 in prejudgment interest; (ii) ordered Curshen to pay a $65,000 civil penalty; and (iii) permanently barred Curshen from participating in an offering of penny stock.
On November 13, 2012, the Court entered a final judgment by consent against Defendant Bruce Grossman. The final judgment permanently enjoined Grossman from future violations of Sections 17(a) of the Securities Act, Section 10(b) of the Exchange Act. and Rule 10b-5 thereunder, and ordered Grossman jointly and severally liable with Curshen for disgorgement of $76,000, which liability was deemed fully satisfied by Grossman's criminal forfeiture order in United States v. Grossman, 09-cr-136 (PGG) (SDNY). The final judgment also barred 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] and Litigation Release Number 22532 (November 16, 2012) [Court Enters Final Judgment by Consent against SEC Defendant Bruce 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.