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by Mike Caswell

Jean-Francois Amyot, the Quebec man facing up to $12.2-million in sanctions for a 2010 pump-and-dump, says there is no basis to impose such a penalty on him. (All figures are in U.S. dollars.) He claims to have never traded the stock in question and says any money he did receive was for a management fee. He also says that the proceeds from selling the stock went to other people or entities, and he has provided names for all of them.

Mr. Amyot made the claims as part of a civil case he faces from the U.S. Securities and Exchange Commission for the manipulation of a pink sheets company, Spencer Pharmaceuticals Inc. The SEC says that he and others orchestrated a 10-month manipulation, through newsletters and false news releases, that culminated with a bogus $245-million takeover offer for the company. During the scheme, he sold millions of unregistered shares of Spencer and realized a $5.8-million profit, according to the SEC.

The SEC is seeking a default judgment against Mr. Amyot, in which the judge would impose penalties without holding a full trial. According to the SEC, those penalties should include disgorgement of $5.8-million plus a fine of up to $5.8-million. With interest, the total penalty could be as high as $12.2-million.

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