U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23386 / October 9, 2015
Securities and Exchange Commission v. Andrew Farmer, et al., Civil Action No. 4:14-CV-2345 (S.D. Tex.)
SEC Obtains Summary Judgment Against Andrew Farmer in Pump-And-Dump Scheme Touting Technology to End Fracking
The Securities and Exchange Commission today announced that, on October 7, 2015, it obtained summary judgment on all of its claims against Andrew Farmer in a market manipulation case involving the securities of Chimera Energy Corp. The SEC suspended trading in Chimera Energy stock in 2012.
In its memorandum and order, the Honorable Keith I. Ellison of the United States District Court for the Southern District of Texas found that:
Based on these findings, the court ruled that Farmer violated Sections 5 and 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 will determine the appropriate remedies against Farmer at a later date.
The SEC’s litigation is being led by Matthew Gulde and Nikolay Vydashenko.
The SEC appreciates the assistance of the Financial Industry Regulatory Authority and the Swiss Financial Market Supervisory Authority in connection with the investigation leading to the litigation.
For further information, see Litigation Release No. 23072 (August 21, 2014).