U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25724 / May 12, 2023
Securities and Exchange Commission v. Giguiere et al., No. 1:18-cv-1530 (S.D. Ca. filed July 6, 2018)
SEC Secures Judgment to Bar Former Microcap CEO
The SEC recently resolved its litigation against Kevin Gillespie, formerly the CEO of a microcap issuer.
According to the SEC's complaint, beginning in February 2017, Gillespie and others engaged in a scheme in conjunction with a promotion of the stock of Arias Intel Corp. ("ASNT"). In February 2017, Gillespie caused ASNT to issue 200,000 shares of common stock to another defendant, as payment for "consulting services" which were then sold onward to a different defendant. The SEC alleged that in August 2017, the group entered into a second transaction in which Gillespie caused ASNT to issue to a defendant a convertible promissory note. The group agreed that once the stock reached their target price of $5.00 per share, the defendant holding the shares would begin selling them and that the group would then split the proceeds.
The SEC's complaint charged Gillespie with violating Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder. On July 11, 2022, the Court entered a bifurcated consent judgment against Gillespie enjoining him from violating the charged provisions and imposing a penny stock bar and officer and director bar. On April 25, 2023, the Commission informed the Court that it did not intend to seek further relief, thereby resolving the litigation as to Gillespie.
The SEC's litigation is being handled by Christopher Dunnigan, Christine Ely, and Lindsay Moilanen of the New York Regional Office and is being supervised by Sheldon L. Pollock. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of California and the Federal Bureau of Investigation.