U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23417 / December 1, 2015
Securities and Exchange Commission v. Daniel E. Ruettiger, Rocco Brandonisio, Stephen DeCesare, Pawel P. Dynkowski, Kevin S. Kaplan, Gregg R. Mulholland, Mehmet Mustafoglu, Joseph A. Padilla, Angelo R. Panetta, Kevin J. Quinn, Andrea M. Ritchie, Chad P. Smanjak, and Gary J. Yocom, Civil Action No. 2:11-CV-02011 (D. Nev.)
Court Enters Final Judgment Against Defendant Chad P. Smanjak in Penny Stock Manipulation Case
The Securities and Exchange Commission announced today that Judge Jennifer A. Dorsey of the United States District Court for the District of Nevada entered a final judgment against Defendant Chad P. Smanjak on November 23, 2015 in SEC v. Ruettiger, et al., Civil Action No. 1:11-CV-02011, a penny stock manipulation case the SEC filed on December 16, 2011. The SEC's complaint alleged that Smanjak engaged in a market manipulation scheme involving the stock of Rudy Nutrition, which generated more than $11 million in illicit profits.
The court entered a consent final judgment against Smanjak that permanently enjoins him from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder; bars him from participating in any offering of a penny stock; and orders disgorgement of $2,010,286 and prejudgment interest of $454,963, which was satisfied by Smanjak's consent to forfeiture in related criminal proceedings. In those proceedings, Smanjak has pleaded guilty to conspiracy to commit securities fraud and is awaiting sentencing. See U.S. v. Smanjak, SA CR No. 10-215 (C.D. Cal.).
The SEC thanks the following agencies for their cooperation and assistance in connection with this matter: the U.S. Attorney's Office for the Central District of California; the U.S. Attorney's Office for the District of Delaware; United States Immigration and Customs Enforcement, Department of Homeland Security, Homeland Security Investigations; and the Department of the Treasury, Internal Revenue Service, Criminal Investigation.