This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

Vincenzo Carnovale, one of two B.C. men charged by the U.S. Securities and Exchange Commission for the paid promotion of Momentous Holdings Corp., has agreed to a permanent ban and $667,653 in financial penalties. (All figures are in U.S. dollars.) The SEC claimed that Mr. Carnovale and a co-accused, Vancouver's Amar Bahadoorsingh, were behind e-mails touting Momentous as a stock that "could result in 500-1000 percent returns." They secretly held large blocks of shares offshore, which they unloaded during the scheme, according to the SEC.

The penalties for Mr. Carnovale are contained in a proposed judgment filed on Dec. 21, 2023, in federal court in Boston. The $667,653 includes disgorgement of $364,683 in gains, plus interest, and a $223,229 fine. The judgment also permanently bars Mr. Carnovale from penny stocks. In accepting the sanctions, Mr. Carnovale did not admit to any wrongdoing.

Assuming the settlement receives approval from the judge, the sanctions will be the final matter in the case. The SEC previously won a permanent ban and financial penalties totalling $466,619 against Mr. Bahadoorsingh. Those penalties were by default, as Mr. Bahadoorsingh mostly ignored the matter. He initially hired a lawyer to discuss a settlement with the SEC, but those talks did not resolve the case. He then failed to file an answer or participate further.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS