SEC Obtains Final Judgment Against Former Head of Investment Banking At Defunct Broker-Dealer
Litigation Release No. 25620 / January 20, 2023
Securities and Exchange Commission v. Robert Donald Bruce Genovese, et al., No. 17-cv-5821 (S.D.N.Y. filed August 1, 2017)
On January 20, 2023, the United States District Court for the Southern District of New York entered a final consent judgment against Abraham "Avi" Mirman, the former head of investment banking at now-defunct New York broker-dealer John Thomas Financial, Inc. (JTF). The SEC charged Mirman and another defendant in 2017 with involvement in a scheme concerning Liberty Silver Corp., a penny stock, in which Mirman aided and abetted others to artificially inflate Liberty Silver's stock price while failing to disclose the sale of 6.6 million Liberty Silver shares to JTF's retail customers, and substantially participated in non-exempt unregistered offerings of additional Liberty Silver shares.
Without admitting or denying the SEC's allegations, Mirman consented to the entry of a final judgment that enjoins him from future violations of Sections 5(a), 5(c) and 17(a)(3) of the Securities Act of 1933, and imposes a three year penny stock bar pursuant to Securities Act Section 20(g). The judgment further orders Mirman to pay disgorgement in the amount of $278,519.45, plus prejudgment interest of $127,006.15, and a civil penalty of $125,000.
The litigation was conducted by Jack Kaufman, Nancy A. Brown, and Derek M. Schoenmann, and supervised by Thomas P. Smith, Jr.