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

The U.S. Securities and Exchange Commission has requested a $5.8-million judgment against Washington State stock tout Ongkaruck Sripetch, also known as "King Richards." (All figures are in U.S. dollars.) The SEC says that Mr. Sripetch participated in multiple pump-and-dump schemes and was one of those behind the manipulation of VMS Rehab Systems Inc., an Ottawa company that supposedly made orthopedic seat cushions. The SEC claims that he and three Canadians realized at least $6.6-million in illegal gains.

The proposed penalties for Mr. Sripetch are contained in a motion that the SEC filed on Dec. 22, 2023, in federal court in California. The $5.8-million includes disgorgement of $4.1-million in gains, plus interest. The size of Mr. Sripetch's payment is the only matter remaining, as Mr. Sripetch previously settled the matter of liability out of court. In doing so, he accepted a permanent penny stock ban and an injunction barring future violations.

The ban and the $5.8-million judgment, assuming the SEC is successful in obtaining it, represent just part of Mr. Sripetch's penalty. He previously pleaded guilty to related criminal charges and received 21 months in jail. In attempting to avoid a lengthy jail term, Mr. Sripetch told the judge that he was lured into the pump-and-dump by Ashmit Patel, a "shady lawyer" from Ontario who was at the heart of the scheme. Mr. Sripetch said that he had found his way to the "seedier side" of the stock market and performed advertising work for a company that Mr. Patel controlled.

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