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by Mike Caswell

San Diego securities lawyer Luis Carrillo has consented to a permanent restraining order and penny stock ban for his role in an $11-million pump-and-dump run from Surrey, B.C. (All figures are in U.S. dollars.) He accepted the ban as part of a case he faces from the U.S. Securities and Exchange Commission, which claims he aided a boiler room scheme that touted two pink sheets listings. The SEC says that Mr. Carrillo was a central participant in the scheme, drafting misleading regulatory filings and providing false legal opinions.

Mr. Carrillo's consent comes in a somewhat unusual letter his lawyer wrote to the judge on Wednesday, Sept. 2. The letter states that Mr. Carrillo will accept the permanent ban as well as a restraining order barring future violations. He will also stop defending the case "with regret" and accepts the fact that the SEC may win a default judgment against him. The letter is unusual because such offers are ordinarily part of settlement negotiations, with successful efforts resulting in both sides agreeing on a court order for the judge to accept (and unsuccessful ones resulting in further litigation).

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