U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 25732 / May 22, 2023

Securities and Exchange Commission v. Thomas Carter Ronk, 18-civ.-00607 (C.D. Cal., filed September 28, 2018; amended December 17, 2020)

SEC Obtains Final Judgment Against Investment Adviser Thomas Carter Ronk in Microcap Stock Trading Scheme

On April 14, 2023, the U.S. District Court for the Central District of California entered a final consent judgment against Thomas Carter Ronk imposing injunctive relief, a five-year officer-and-director bar, a five-year penny stock bar, and a civil penalty.

According to the SEC’s amended complaint, Ronk was involved in three separate fraudulent schemes.  First, Ronk was allegedly engaged in fraudulent promotional efforts in order to sell or assist in the sale of two microcap stocks by disseminating misstatements in newsletters.  Second, the SEC alleged that Ronk made false statements to prospective investors in connection with a private stock offering.  Third, according to the complaint, Ronk manipulated the price of common stock in the same two issuers for which he engaged in fraudulent promotional efforts.

The SEC’s amended complaint charged Ronk with violating Section 17(a) of the Securities Act of 1933 (Securities Act), Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the anti-touting provision of Section 17(b) of the Securities Act.  Without admitting or denying the SEC’s allegations, Ronk consented to a final judgment in which he agreed to be permanently enjoined from violations of the charged provisions and agreed to a five-year officer-and-director bar and a five-year penny stock bar.  He additionally agreed to pay a civil penalty of $75,000.

The SEC’s litigation is being handled by Christopher Dunnigan and Preethi Krishnamurthy of the New York Regional Office and is being supervised by Sheldon L. Pollock.