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by Mike Caswell

Guillermo Ciupiak, one of the two masterminds of the $34-million Biozoom Inc. fraud, has avoided any financial penalties for the scheme, with a judge permanently banning him from penny stocks. (All figures are in U.S. dollars.) The U.S. Securities and Exchange Commission claims that Mr. Ciupiak and others, including Vancouver's Faiyaz Dean, were part of a 2013 scheme in which Biozoom went to a $4.50 high. Mr. Ciupiak and others unloaded 14 million shares through nominees as the men touted Biozoom's product, a skin scanner that could supposedly detect health problems.

The ban for Mr. Ciupiak is contained in a judgment handed down on March 8, 2024, in federal court in New York. At the SEC's request, the order does not include any fines or financial penalties. Citing Mr. Ciupiak's "substantial co-operation," the SEC did not seek anything other than the ban and an injunction barring future violations.

For Mr. Ciupiak, the judgment resolves just one of his legal problems. He also faced related criminal charges in Arizona, where federal prosecutors pursued him, Mr. Dean and others for the Biozoom scheme. Mr. Ciupiak pleaded guilty to those charges, but it is not clear if he received a penalty of any substance, as his file is sealed.

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