SEC Obtains Fraud Judgment Against Former Stock Promoter; Over $2.5 Million In Disgorgement and Penalties

Defendant was charged with playing a crucial role in a “pump and dump”/market manipulation scheme involving the common stock of China Energy Savings Technology, Inc. Per the Complaint, defendant received thousands of shares resulting in a $1.7 million profit, as payment for: (i) helping China Energy obtain an exchange listing by giving away shares to hundreds of persons, thereby creating a false impression that China Energy had a bona fide and active shareholder base; (ii) engaging in unregistered distributions of securities; and (iii) entering into secret arrangements to give away stock to persons who agreed to purchase more in the open market, thereby creating a false impression of active trading and investor interest.