SEC Obtains Final Judgment Against Investor Relations Writer Charged with Fraudulent Stock Promotion Scheme
Litigation Release No. 24280/ September 20, 2018
Securities and Exchange Commission v. CSIR Group, LLC, et al., No. 17-cv-02541 (S.D.N.Y. filed Apr. 10, 2017)
On September 14, 2018, the U.S. District Court for the Southern District of New York entered a final judgment against Thomas Meyer for his role in a fraudulent stock promotion scheme. According to the SEC's complaint, CSIR Group, LLC hired writers like Meyer to publish dozens of bullish articles on its clients, which appeared to be independent research pieces but, in fact, were paid advertisements.
The final judgment ordered Meyer to pay disgorgement plus interest of $41,185.29 and a penalty of $20,000. Meyer consented to the entry of the final judgment, and neither admitted nor denied the allegations in the SEC's complaint. He also previously consented to the entry of a prior judgment in this matter, without admitting or denying the allegations in the complaint, which permanently enjoined him from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, as well as the anti-touting provisions of Section 17(b) of the Securities Act of 1933.
The District Court previously entered final judgments against the other defendants in this case. With the entry of the judgment against Meyer, the SEC's litigation has concluded.