SEC Charges Six Individuals in International Microcap Fraud Schemes
The Securities and Exchange Commission today charged six individuals and their companies with participating in schemes that allegedly generated more than $35 million of illegal sales of stock in at least 45 microcap companies. The charges contained in two complaints reflect investigations by staff in the SEC’s New York and Boston offices, and assistance from multiple regulators outside the U.S.
According to one SEC complaint, Steve M. Bajic, a citizen of Canada and Croatia, and Rajesh Taneja, a Canadian citizen, helped shareholders secretly dump large quantities of microcap stock, coordinating the illegal stock sales with Kenneth Ciapala, a citizen of the U.K. and Switzerland, and Anthony Killarney, a U.K. citizen, and Swiss-based company Blacklight SA. The SEC’s complaint also alleges that Christopher McKnight, a Canadian citizen, and Aaron Wise, a U.S. citizen, fraudulently transferred, and hid the sources of, funds used to promote several of the microcap stocks.
A second complaint alleges that Ciapala and Blacklight facilitated the sale of millions of unregistered shares of EMS Find Inc. (EMSF) while the microcap stock’s price was being artificially inflated and dumped into the market. The complaint further alleges that Ciapala and Blacklight engaged in manipulative trading of EMSF stock. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Ciapala and Blacklight.
https://www.sec.gov/news/press-release/2020-1