A federal court in the District of Columbia has barred a Long Island-based individual whom the Securities and Exchange Commission charged with defrauding investors from participating in penny stock offerings for twenty-five years.

The SEC charged Eric P. Lesak and his firms, Global Research, LLC (PA) and Global Research, LLC (NY), on August 21, 2018, alleging that Lesak and his firms cajoled more than 100 cold-called investors into buying more than $2.8 million worth of shares in penny stock company Axiom Holdings Inc., but didn't tell prospective investors that Lesak had been barred by the predecessor to the Financial Industry Regulatory Authority, or that he had pled guilty to securities and wire fraud. Lesak and his firms also didn't tell prospective investors that they were being paid thousands of dollars each month to promote Axiom stock to investors.

The final judgment, entered by default on October 29, 2018 by the Honorable Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia, permanently prohibits Lesak and his firms from violating the antifraud provisions of Sections 17(a)(1) and (3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and orders the defendants to pay, jointly and severally, disgorgement of $767,115 plus interest of $46,644. The judgment also orders Lesak to pay a civil monetary penalty in the amount of $184,767, Global to pay a civil monetary penalty in the amount of $923,831, and prohibits Lesak from participating in any offering of penny stock for twenty-five years.

The SEC's Retail Strategy Task Force and Office of Investor Education and Advocacy encourage investors to check the background of anyone selling or offering them an investment using the free and simple search tool on Investor.gov.