SEC Obtains Consent Judgments in Fraudulent Disclosure and Stock Manipulation Case
Litigation Release No. 24268 / September 14, 2018
Securities and Exchange Commission v. Arista Power, Inc., et al., No. 17-CV-4598 (S.D.N.Y. filed June 19, 2017)
The Securities and Exchange Commission has obtained final consent judgments against defendants Peter Kolokouris, Michael Hughes, Ekaterini Kolokouris, Anastasios Kolokouris, Ioannis Kolokouris, Demitrios Kolokouris, Sophia Kolokouris, Michael Papapanu, and Janice Papapanu. Last year, the SEC charged Peter Kolokouris, an Arista "consultant," for engaging in schemes to manipulate the stock price of Arista Power, Inc. ("Arista") and in connection with material misrepresentations and omissions in certain Arista public filings. The SEC also charged Michael T. Hughes, formerly Arista's General Counsel, with the false disclosures scheme. The remaining defendants - relatives of Peter Kolokouris - were charged with violations of Rule 102 of Regulation M.
The final consent judgement against Peter Kolokouris, entered on September 10, 2018 by the Honorable Gregory H. Woods of the U.S. District Court for the Southern District of New York, orders Peter Kolokouris to pay disgorgement of $799,000, a civil penalty of $103,564, and prejudgment interest of $84,762, and also imposes a permanent penny-stock bar. The judgment also enjoins Peter Kolokouris from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder and the anti-manipulation provisions of Section 9(a)(1) and 9(a)(2) of the Exchange Act and Rule 102 of the anti-manipulation rules of Regulation M. The consent judgment against Michael T. Hughes, orders a $50,000 civil penalty, a three-year bar from serving as an officer or director of a publicly held company, and a three-year penny-stock bar. The judgement also enjoins Michael T. Hughes from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder. The consent judgments against the other individuals enjoin them from violating Rule 102 of the anti-manipulation rules of Regulation M. The defendants consented to entry of the final judgment without admitting or denying the SEC's allegations.
The SEC's investigation was conducted by Howard Kim, Sandra Yanez, Jack Kaufman, Alan Maza, Celeste Chase and Adam S. Grace in the New York office, and supervised by Lara Shalov Mehraban. The SEC's litigation was led by Mr. Kaufman and Mr. Kim.
For further information, see Litigation Release No. 23863.