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by Mike Caswell
The U.S. Securities and Exchange Commission has won a $760,059 judgment against Alexander Kon, a Kansas stock tout accused of boosting several listings despite a prior ban. (All figures are in U.S. dollars.) The SEC said that Mr. Kon accepted hundreds of thousands of dollars, mostly from Canadian accounts, to issue favourable reports. He disguised his role by having an offshore associate ostensibly control his business, the SEC claimed.
The penalties for Mr. Kon are contained in a judgment handed down on Thursday, Feb. 9, in federal court in Miami. The $760,059 amount includes disgorgement of $585,960 in gains, plus interest, and a $103,591 fine. There was no trial for Mr. Kon, as he settled the case out of court, agreeing to a permanent penny stock ban and to pay whatever fine the judge determines to be appropriate. In reaching the settlement, Mr. Kon did not admit any wrongdoing.
Thursday's decision is mostly a victory for the SEC, which had asked for a $906,468 judgment. In seeking that amount, the SEC cited Mr. Kon's failure to obey a prior ban. In 2018, he agreed to a one-year ban from promoting stocks to settle charges arising from his touting of a medical marijuana listing. The SEC said that he had failed to disclose the source of a $25,000 payment that he received.
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