Bronxville penny stock manipulator Joseph A. Fiore has been banned from the market for five years and ordered to pay $2.5 million in ill-gotten gains and a penalty to the U.S. Securities and Exchange Commission.
U.S. District Court Judge Kenneth M. Karas also applied the April 14 judgment to two companies controlled by Fiore: Berkshire Capital Management Co., an Eastchester private equity firm that specialized in penny stocks, and SPYR Inc., formerly Eat at Joe”™s Ltd. of Denver.
The SEC accused Fiore in a 2018 lawsuit of engaging in market manipulation schemes that produced more than $11.5 million in illicit proceeds from stock transactions.
From 2013 to 2014, he bought and sold shares in Plandai Biotechnology Inc., a botanical extracts company based in London.
Fiore masked his ownership of Plandai stock and concealed his intentions from investors, the SEC charged, by submitting false reports to brokerage firms and not filing a mandatory SEC report.
He used several techniques. In “scalping,” the SEC charged, he paid stock promoters $2.1 million to hype Plandai stock to drive up the price.
He created “wash trades,” buying and selling the same amounts of stock at the same price on the same days, to give the appearance of legitimate market activity.
In “marking the close,” he executed trades near the close of the market to inflate the end-of-day share price and create the appearance of active trading.
In “painting the tape,” he repeatedly bought stock on the same day to inflate the price.
He often sold Plandai shares on the same day or within a few days of employing the schemes, the SEC charged, reaping more than $11.5 million.
Fiore consented to the sanctions, according to the judgment, admitted that the SEC allegations were true and waived his right of appeal.
Karas ordered him to disgorge $2 million within two weeks and to pay a $500,000 penalty within a year. He may not participate in any transactions involving stocks priced at less than $5 per share, for five years, and he was ordered to adhere to all securities regulations.
Fiore was represented by Manhattan attorney Marc Steven Gottlieb. The SEC was represented by staff attorneys Christian Schultz, John J. Bowers and Paul W. Kisslinger.
