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by Mike Caswell

Jackson Friesen, a Vancouver-area man facing a "colossal" $17.4-million judgment request from the U.S. Securities and Exchange Commission for a scheme on the U.S. markets, says that the amount of money the SEC is seeking is far beyond reasonable. (All figures are in U.S. dollars.) The money stems from a scheme in which Mr. Friesen unloaded shares during a paid promotion of a supposed biotech listing. According to the SEC, he dumped the stock through an offshore service run by West Vancouver's Frederick Sharp.

The only remaining matter for Mr. Friesen is the magnitude of his penalty, a Boston jury having previously found him liable for the scheme. To that end, the SEC is asking that the judge order him to pay $17.4-million, with the amount to include disgorgement of $11.8-million in gains, plus interest, and a $1.5-million fine. The SEC is also asking that the judge permanently ban Mr. Friesen from penny stocks.

Mr. Friesen, of course, sees the matter much differently. In a response filed on March 1, 2024, he says that there is no basis for the SEC to pursue such a sizable judgment against him. Lacking "meaningful proof of actual profits or gains," the regulator has based its claim a "reasonable approximation of profits," Mr. Friesen contends. According to Mr. Friesen, the evidence shows him receiving a relatively small amount, of under $200,000.

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