SEC Obtains Judgments Against Danny Garber and Michael Manis
by
Brenda Hamilton on Aug. 29, 2014
Business Securities Business Corporate Business
Summary: On August 13, 2015, the Securities and Exchange Commission announced settlements and final judgments were entered against Danny Garber, Michael Manis, Kenneth Yellin, Jordan Feinstein, and certain entity defendants in SEC v. Garber et al., 12-cv-9339 (SAS) (S.D.N.Y.).
The SEC's Complaint alleges that the defendants violated Section 5 of the Securities Act of 1933, by purchasing over a billion unregistered shares in dozens of penny stock companies and reselling the shares to the investing public without complying with the registration statement provisions of the securities laws.
Without admitting or denying the allegations, Garber, Manis, Yellin and Feinstein have each agreed to final judgments that enjoin them from any future violations of Section 5 of the Securities Act and require them to pay a $25,000 civil penalty. The final judgment against Garber also includes a permanent penny stock bar, permanently enjoins him from participating in unregistered offerings and requires him to pay disgorgement of $862,000 plus prejudgment interest of $113,000.
The final judgments against Manis, Yellin and Feinstein permanently enjoin them from participating in any offering made pursuant to Rule 504 of Regulation D, require Manis to pay disgorgement of $862,000 plus prejudgment interest of $113,000, and require Yellin and Feinstein to each pay disgorgement of $314,550 plus prejudgment interest of $41,419. The entity defendants Coastal Group Holdings, Inc., the OGP Group LLC, Rio Sterling Holdings LLC, Slow Train Holdings LLC, and Spartan Group Holdings LLC have agreed to final judgments that enjoin them from any future violations of Section 5 of the Securities Act.