U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23014 / June 4, 2014
Securities and Exchange Commission v. Giuseppe Pino Baldassarre, Robert Mouallem, and Malcolm Stockdale, Civil Action No. 11 Civ. 5970 (ARR) (E.D.N.Y.)
Court Enters Default Judgment Against SEC Defendant Malcolm Stockdale
The Securities and Exchange Commission announced that on May 30, 2014, the Honorable Allyne R. Ross, United States District Court Judge for the Eastern District of New York, entered a default judgment against Defendant Malcolm Stockdale. The judgment permanently enjoins Stockdale 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. The judgment also (i) orders Stockdale to pay a $50,000 civil penalty; (ii) orders Stockdale to pay total combined disgorgement and prejudgment interest of $22,978.55, which is deemed satisfied by the forfeiture orders entered against Stockdale and his co-Defendants in a parallel criminal action, and (iii) bars Stockdale from participating in any offering of penny stock.
On December 7, 2011, the SEC filed its complaint against Stockdale, Giuseppe Pino Baldassarre, and Robert Mouallem, alleging that from at least October 2009, they engaged in a fraudulent broker bribery scheme designed to manipulate the market for the common stock of Dolphin Digital Media, Inc. The complaint alleged that they 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.