Defendants Kenneth a. Wolkoff and George Sobol Settle Charges of Securities Registration Violations in SEC Action

Jack Humphrey, Regulatory journalist
May 03, 2012 /

A final judgment was entered against Kenneth A. Wolkoff and George Sobol in an action filed by the Securities and Exchange Commission in the United States District Court for the District of Columbia against e-Smart Technologies, Inc. and related individuals and entities.

In that action, the SEC alleges that defendants Wolkoff and Sobol participated in an unregistered stock offering of e-Smart securities and acted as unregistered broker-dealers.

Specifically, the SEC alleges that Wolkoff participated in the unregistered stock offering from April 2005 through at least June 2006, completing at least 115 transactions which brought in over $2,600,000 and sold over 26 million e-Smart shares.

The SEC also alleges that Sobol participated in the unregistered stock offering from March 2005 through at least June 2006, completing at least 19 transactions which brought in over $890,000 and sold over $8.8 million e-Smart shares.

During this period, neither was registered with the Commission as a broker-dealer or associated with a registered broker-dealer.

Wolkoff also consented to be barred for five years from participating in the offering or sale of a penny stock, to disgorge all e-Smart stock he received as compensation for his sales efforts and to pay a $40,000 penalty.

Sobol consented to be barred for five years from participating in the offering or sale of a penny stock, to disgorge all e-Smart stock in which he has a legal or beneficial interest and to pay a $30,000 penalty.

The litigation against the other defendants, alleging violations of the anti-fraud, securities registration, financial reporting, books and records, and internal control provisions of the federal securities laws, is ongoing.

 

Share your opinion