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by Mike Caswell

The U.S. Securities and Exchange Commission has won a $7.2-million judgment against Kevin Dills, a California man charged as part of $100-million scheme on the OTC Markets. (All figures are in U.S. dollars.) The government claimed that Mr. Dills helped insiders illegally dump shares of several companies, including a supposed cancer treatment listing that was the "next biopharma stock poised to EXPLODE!" The trading, as set out by the SEC, was routed in part through an unnamed Canadian firm.

The sanctions for Mr. Dills are contained in a judgment entered in federal court in Boston on Wednesday, March 20. The $7.2-million includes disgorgement of $6.2-million in gains, plus interest, and a $223,229 fine. In addition, the judge has permanently banned Mr. Dills from penny stocks and ordered that he not commit any future violations.

For Mr. Dills, the judgment resolves just one of his legal problems, as he also faces a parallel criminal case from prosecutors in Boston. He pleaded guilty in that case and awaits sentencing. The charge to which he pleaded guilty, one count of securities fraud, carries a maximum term of 20 years, but prosecutors agreed to recommend a sentence that includes 20 months of house arrest.

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