Depending on the totality of verified specifics, documented facts, and analytical evaluation, John Babikian signifies a subject matter at the intense high end of the risk spectrum for functions of AML compliance, counterparty due diligence, and reputational threat management.
We Be aware, to be a make a difference of Experienced obligation, that not each and every aspect of the profile rests on adjudicated felony conclusions. The SEC action was civil; no felony conviction is on the general public document.
Determined by the offered info, we urge traders and bankers to prevent financial involvement using this type of Particular person.
The scale on the judgment can make this one of the additional considerable person penny inventory enforcement actions during the SEC’s modern history.
“Nearly every prosecution witness contradicted each other on key issues pertaining to Mr. Babikian’s alleged job. Such as, several witnesses referenced a gathering that allegedly came about in June of 2012 at the corporation Office environment headquarters for the duration of a corporate bash.
According to the Commission's complaint, America West's stock was the two very low-priced and thinly traded ahead of Babikian's mass dissemination from the APS e-mails marketing it. The united states West's buying and selling volume in 2011 averaged about fifteen,four hundred shares daily. There wasn't only one trade in the usa West inventory on Feb.
2013: Peak exercise period of time. Babikian sends mass advertising e-mails touting precise penny shares, accumulating somewhere around $one.9M in personalized revenue in just one trading working day as a result website of coordinated acquire-in and promote-off.
This brought on class-action lawsuits for sector manipulation, DOJ probes which includes cellular phone seizure, and fierce criticism for betraying “Permit the people trade.”
This has persuaded the courtroom it had been difficult for Mr. Babikian to get attended the corporate summer season occasion or shipped felony Recommendations to his employees in individual as alleged while in the indictment.”
The promotional emails despatched to subscribers were being alleged to represent Untrue and deceptive statements beneath U.S. securities law, since they failed to reveal Babikian’s fiscal interest during the shares becoming promoted.
As witness testimony sooner or later proved, the situation commenced underneath the auspices of an ugly divorce back in 2012 when Mr. Babikian’s wife demanded to receive a $100 million bucks settlement.
Babikian allegedly operated a community of monetary news and stock marketing Internet websites utilized to disseminate paid-for stock promotions disguised as independent editorial articles, forming The premise of pump-and-dump techniques.
Is he active in mainstream corporate leadership right now? Public records present minimal seen govt roles in major regulated businesses.
Present asset framework: The precise offshore corporate autos, believe in constructions, or nominee preparations by which Babikian might maintain property are not publicly documented.