MMA Manager Jason Genet Consents To Entry of Final Judgment in SEC Action

Following up on the Securities & Exchange complaint filed against Jason M. Genet (here is the post from Josh Gross breaking the story last year), on July 26, 2010, the SEC filed a Motion to Approve a Consent Judgment against Genet (the consent was signed by Genet in June) in the United States District Court for the Eastern District of New York.

When the complaint was filed, Josh Gross described the lawsuit, in part, as follows:

Jason Genet, a prominent Phoenix-based manager of mixed martial artists including Shane Carwin, Benson Henderson and Efrain Escudero, is alleged to have acted in concert with other parties to perpetrate a "pump and dump" manipulation of the common stock of China Energy Savings Technology, Inc., according to a complaint filed by the Securities and Exchange Commission.

According to the filed Consent (the full filing is available via Pacer), "[w]ithout admitting or denying the allegations of the complaint (except as to personal and subject matter jurisdiction, which defendant admits)," Genet "has consented to the entry of the final judgment which, among other things:"

(a) permanently restrains and enjoins Defendant from violations of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") [15 U.S.C. § 78j(b)], Exchange Act Rule l0b-5 [17 C.F.R. § 240.10b-5], and Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 [15 U.S.C.§§ 77e(a), 77e(c) and 77q(a)];

(b) orders Defendant to pay disgorgement in the amount of $1,700,000.00, plus prejudgment interest thereon in the amount of $697,745.57;

(c) orders Defendant to pay a civil penalty in the amount of $130,000.00 under Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. § 78u(d)(3)]; and,

(d) bars the defendant from participating in any offering of a penny stock for a period of five years.  

The SEC also filed a proposed final judgment for signature by Judge Seybert.

Fight Lawyer