The members of the jury were convinced that the defendants violated the anti-fraud provisions of counts, including that they violated the antifraud provisions of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5.
Additionally, the jury found Avalon and Fayyer guilty of violating the market manipulation provision of Section 9(a)(2) of the Exchange Act.
The jury also found the Ukrainian firm, its owner and Pustelnik accountable for violating Section 20(a) of the Exchange Act.
Entities engaged in manipulative trading schemes has “no place” in the market
In a statement, SEC Division of Enforcement Co-Director Stephanie Avakian, said,”This case involved sophisticated, manipulative trading schemes, which generated millions in illicit profits. Today’s verdict demonstrates the SEC’s willingness to take on complex trading schemes in litigation and our ability to achieve strong results.”
On the other hand, SEC Division of Enforcement Co-Director Steven Peikin, commented, “Layering and spoofing undermine the transparency and integrity of the markets. As the jury recognized, such fraudulent conduct violates the securities laws, and has no place in our markets.”
