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2655 South Le Jeune Road
Suite 1108
Coral Gables, FL 33134

SEC Litigation Update: Enforcement Action Against Penny Stock Fraud Promoter In Florida

On September 1st, 2021, the Securities and Exchange Commission (SEC) released an official update in a Florida penny stock fraud case. Alexander Kon, a penny stock promoter from Overland Park, Kansas, is facing proposed enforcement action in the United States District Court for the Southern District of Florida.

Mr. Kon is accused of violating the terms of a pre-existing SEC penny stock bar by actively promoting low-priced securities for which he had personal financial interest. In this blog post, our Miami penny stocks lawyers offer a more in-depth review of the allegations raised against this individual.

Background: SEC Barred Alexander Kon from Penny Stocks

 In May of 2018, the SEC imposed a cease and desist order against penny stock promoter Alexander Kon. At that time, Mr. Kon was the sole member of a company called 007Stockchat LLC or Stockchat. According to the agency, Mr. Kon aggressively tried to increase the stock price of the company using a number of different unlawful methods.

Among other things, Mr. Kon allegedly used a scheme involving misleading email lists and other material misrepresentations in an attempt to jolt the price of the stock. Based on the allegations, he was cited for willful violations of Section 17(b) of the Securities Act. Mr. Kon was fined $25,000 and suspended from offering penny stocks.

Allegations: Promotion of Penny Stock in Violation of Bar 

Based on the information contained in the proposed enforcement, the SEC is alleging that Mr. Kon promoted a penny stock in violation of an SEC bar. If true, this conduct would constitute a violation of federal securities law. Notably, the SEC also states that it has made multiple requests of Mr. Kon for the production of relevant documents. However, to this point, these requests have been ignored. 

The SEC is Seeking a Court Order for Cooperation 

As part of its filing with the United States District Court of the Southern District of Florida, the SEC is seeking equitable relief. More specifically, the federal securities regulator wants a court order compelling Mr. Kon to show clear cause why he has failed to appear for on-the-record testimony and provide relevant financial documents as requested by the SEC.

Additionally, the SEC states that it will continue its investigation into the alleged penny stock violations by Alexander Kon. Depending on the findings of the investigation, the SEC may take further enforcement action, potentially including imposing significant financial penalties against this individual.   

Contact Our Miami, FL Penny Stock Fraud Attorney for Immediate Help

At ​Carlson & Associates, P.A., our Miami broker misconduct fraud lawyers possess the professional skills and legal experience to handle the full spectrum of penny stock fraud claims. If you suffered losses in low priced securities, we will protect your rights. Call us now or connect with us online for a confidential appointment with a lawyer. From our Miami legal office, we handle penny stock investment fraud claims in South Florida and beyond.



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Coral Gables, Florida 33134

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