SEC Obtains Final Judgment Against Two Defendants in Florida Pump-and-Dump Securities Fraud Scheme
On June 20th, 2025, the Securities and Exchange Commission (SEC) announced that it secured a final judgment against two defendants in a securities fraud case in South Florida. Civil charges were brought against Benjamin Ballout and Mohamed Zayed for their role in a pump-and-dump scheme. Here, our Miami, FL securities fraud attorney discusses the case in more detail.
Successful SEC Judgment: Benjamin Ballout and Mohamed Zayed
In the United States District Court for the Southern District of Florida, the SEC obtained a successful civil judgment against Benjamin Ballout and Mohamed Zayed. The case is related to their role in a “pump-and-dump” scheme centered on a company called Enerkon Solar International, Inc. Notably, Mr. Ballout became Enerkon’s sole officer and controlling shareholder in February 2018. The SEC took enforcement action on the grounds that Mr. Ballout (with help from Mr. Zayed) inflated the value of Enerkon’s stock through false and misleading representations to investors. Specifically, the SEC focused on three false representations made by the company’s leadership:
- False Claim: Enerkon had acquired distribution rights to a COVID‑19 instant test.
- False Claim: Enerkon had received a $28 million purchase order for those tests.
- False Claim: Enerkon purchased 122 acres in Pennsylvania to build a solar/hydrogen plant
Recently, a federal judge in Florida found Mr. Ballout and Mr. Zayed civilly liable for their roles in the pump‑and‑dump scheme. Evidence included unrebutted claims that Mr. Ballout misstated cash assets and that Mr. Zayed created fake promissory documentation. The SEC secured permanent penny‑stock bans and monetary sanctions. Further, each man was fined $460,928 and disgorged of ill-gotten gains.
Understanding Pump-and-Dump Schemes
The SEC contends that Mr. Ballout and Mr. Zayed used Enerkon Solar International, Inc. in a manner consistent with a classic pump-and-dump scheme. Broadly explained, a pump-and-dump scheme is a type of securities fraud where perpetrators artificially inflate the price of a stock (usually a low-volume penny stock) through false and/or materially misleading statements. Once the stock price surges due to investor interest driven by hype, the fraudsters “dump” their shares by selling them at the elevated price. The sudden selloff typically causes the stock’s value to collapse. Of course, that means that it is innocent investors who are left holding the bag.
To be clear, pump-and-dump schemes are illegal under federal securities laws, such as the Securities Exchange Act of 1934. At their core, they involve material misrepresentations and manipulation of the market. The SEC and DOJ routinely investigate and prosecute individuals involved in these activities, particularly when false press releases, forged documents, or insider share issuances are used. If you suffered financial losses because of a pump-and-dump scheme, you may be able to bring a claim to seek financial compensation for your damages. An attorney can help.
Contact Our Miami, FL Securities Fraud Attorney Today
At Carlson & Associates, P.A., our Miami investor losses attorneys are standing by, ready to fight to protect your rights and your interests. If you suffered serious losses due to investment fraud, we are here as a professional resource that you can count on. Contact us today for a fully private case review. Our firm represents investors in Miami and throughout South Florida.
Source:
sec.gov/enforcement-litigation/litigation-releases/lr-26331
