Petroteq Energy, Inc., Aleksandr Blyumkin, and Mark Korb
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25994 / May 6, 2024
In the Matter of Petroteq Energy, Inc. and Aleksandr Blyumkin, Administrative Proceeding File No. 3-20898
Securities and Exchange Commission v. Mark Korb, No. 2:22-cv-04031-CAS-AS (C.D. Cal. filed June 13, 2022)
In the Matter of Mark Korb, CA, Administrative Proceeding File No. 3-21920
SEC Announces Remedies Obtained Against Former Executives for Fraud at Tar Sands Mining Company
The Securities and Exchange Commission today announced the conclusion of litigation against two former executives of Petroteq Energy, Inc. (“Petroteq”), executive chairman Aleksandr Blyumkin and chief financial officer Mark Korb. On June 13, 2022, the SEC filed partially settled cease-and-desist proceedings against Blyumkin and Petroteq, and a litigated civil action against Korb.
In the administrative proceedings, the SEC issued an order on June 13, 2022 finding that, from September 2017 to May 2019, Petroteq raised $7.39 million through an unregistered offering of stock. Petroteq filed with the SEC Form D notices signed by Blyumkin that represented that Petroteq would not pay commissions in connection with the offering and that its officers or directors would not receive offering proceeds. The SEC’s order found, however, that Petroteq paid $2.89 million in commissions, and that Blyumkin personally received $68,623 of the offering proceeds. The June 13, 2022 order required Blyumkin to pay a civil penalty of $450,000, imposed a cease-and-desist order, barred him from serving as an officer or director of a public company, and ordered further proceedings to determine what disgorgement and prejudgment interest should be ordered against him. On April 12, 2024, the SEC issued an order against Blyumkin by consent, ordering him to pay disgorgement of $1,791,508 plus prejudgment interest of $210,201.26.
In the civil action against Korb, the SEC’s complaint alleged, among other things, that Korb failed to consider whether Petroteq’s mining rights were appropriately priced and analyzed for impairment, and was at least negligent in not inquiring into or disclosing multiple transactions benefiting Blyumkin, his family, and his associates. On April 10, 2024, the U.S. District Court for the Central District of California entered a final judgment by agreement against Korb, ordering him to pay a civil penalty of $60,000 and permanently enjoining him from violating Section 17(a)(3) of the Securities Act of 1933 (“Securities Act”) and Section 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 13a-14 and 13b2-1 thereunder, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, and 13a-15(a) thereunder.
Finally, on April 22, 2024, the SEC issued an order against Korb by consent pursuant to Rule 102(e)(3)(i) of the Commission’s Rules of Practice. The SEC’s order suspended Korb from appearing or practicing before the SEC as an accountant with a right to apply for reinstatement after two years.
The cases were litigated by Jason P. Reinsch and supervised by B. David Fraser and Keefe Bernstein.
Final Judgment - Korb