New York Court Rules Against Emerald Asset Advisors

Jack Humphrey, Regulatory journalist
July 30, 2012 /

A New York court has convicted defendants Michael J. Xirinachs and Emerald Asset Advisors LLC (Emerald Asset) for allegedly distributing unregistered billions of shares of Universal Express Inc. (USXP).

The judgment ordered them jointly and severally to disgorge over $3.8 million in profits plus prejudgment interest, and pay civil penalties of $3,835,000 based on 590 unregistered transactions.

The order forces Xirinachs separately to disgorge over $428,000 in compensation plus prejudgment interest, and pay civil penalties of $2,119,000 based on 326 unregistered transactions.

It also barred Xirinachs and Emerald Asset from participating in penny stock offerings for three years, but allowed them to purchase penny stocks during that period. The other defendants were previously sanctioned on September 8, 2011.

The case against Xirinachs and Emerald Asset was first heard on August 11, 2011 and was amended last July 26.

The SEC said the defendants engaged in an unregistered distribution of billions of shares of Universal Express Inc. between February 2006 and June 2007.

 

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