SEC obtains final judgment against CodeSmart defendant for role in alleged offering fraud
The New York Eastern District Court has entered a final judgment against Marc Wexler, enjoining him from violating certain provisions of the federal securities laws.
According to the SEC’s complaint, starting in 2013, Wexler was involved in a scheme to manipulate the price of the securities of CodeSmart Holdings, Inc. (CodeSmart). The SEC alleged that Wexler and others sought to flood the market with CodeSmart shares and engaged in a promotional campaign to artificially inflate the price of the stock.
The SEC further alleged that Wexler personally dumped his CodeSmart shares on the market while working with two brokers who were at the same time purchasing CodeSmart stock in the accounts of their clients.
In connection with this scheme, Wexler allegedly profited over $2 million.
The SEC’s complaint charged Wexler with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
On December 22, 2022, the Court entered a partial judgment against Wexler by consent in which he agreed to be permanently enjoined from violations of the charged provisions and agreed to a penny stock bar and officer-and-director bar.
On December 4, 2023, the Court entered a final judgment against Wexler by consent in which he agreed to be permanently enjoined from violations of the charged provisions.
He agreed to disgorge $2,218,599 in ill-gotten gains and prejudgment interest thereon, the payment of which was deemed satisfied by the restitution order in the parallel criminal proceeding.