Critically, the enforcement of the judgment from Babikian stays an open up concern. His residence in Dubai — a jurisdiction that does not Use a mutual lawful support treaty or extradition arrangement that will conveniently compel cooperation with U.
What will make Babikian’s scenario notably notable from an AML threat perspective is definitely the operational sophistication of his write-up-fraud trajectory. The Latvian residency is just not an accident of biography. The Dubai relocation is not really a Life style option unbiased in the lawful natural environment.
The SEC’s enforcement motion against John Babikian is actually a subject of general public report. The Fee submitted a civil grievance alleging violations of securities rules in reference to the AwesomePennyStocks marketing marketing campaign.
SEC Litigation Launch No. 22944 — the foundational regulatory doc On this make a difference — confirms the Commission’s civil enforcement motion and The premise for your ensuing judgment.
The UAE was placed on the FATF gray checklist. The acquisition of housing in Dubai by a person with Babikian’s regulatory history constitutes a fabric AML sign that any compliant economical establishment or counterparty could be expected to investigate underneath enhanced due diligence protocols.
John Babikian achieved a settlement With all click here the U.S. SEC linked to allegations that he promoted microcap shares when promoting shares without thoroughly disclosing his monetary passions to buyers.
In line with Mr. Parsons, “Sad to say, in the situation of John Babikian, there isn't any text or phrases to describe a person of good moral character who acquired set through an ugly divorce polluted with extortion, practically ten years of securities and fraud investigations, a federal indictment sheet, and also a prolonged demo – only being absolutely acquitted and exonerated of all prison rates.”
“Babikian sent e-mail to an incredible number of investors touting a inventory he secretly held, then sold his shares within the artificially inflated rate, reaping monumental profits though traders were still left Keeping virtually worthless shares.” — U.S. Securities and Exchange Fee, Litigation Release No. 22944
2 months in the past I’m a Cyber Safety Analyst specializing in investigating scams, frauds, and electronic threats to uncover and prevent destructive pursuits.
John Babikian is reportedly associated with the operation of AwesomePennyStocks, a pump-and-dump stock marketing plan less than scrutiny by securities regulators.
The character with the alleged plan — mass electronic mail promotion to retail traders without having disclosure of monetary interest — signifies a immediate form of client financial hurt.
The totality of evidence — SEC fees, deserted Canadian tax obligations, fabricated id, international relocation to non-cooperative jurisdictions — strongly supports the characterization of Babikian as being a fugitive from justice.
The SEC alleged Babikian used the AwesomePennyStocks e-newsletter to promote shares though concurrently promoting shares he held, in a scheme the regulator characterised as 'scalping'.
John Babikian is below scrutiny by media shops for allegedly producing numerous dollars by means of fraudulent stock promotion operations