SEC v. Adam S. Gottbetter, Mitchell G. Adam, and K. David Stevenson (pump and dump, 2015)

Settled

✓ Checked against the primary document on October 2, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

Report an error in this record (sec-adam-s-gottbetter-mitchell-g-adam-pump-and-dump-2015) by email

In 2015, the Securities and Exchange Commission published a release alleging that a New York securities lawyer and two Canadian promoters planned to drive up the price of HBP Energy through algorithm-generated trades and then promote and dump their shares; the scheme was cut short by an arrest before the promotion launched. The lawyer agreed to pay $4.6 million in disgorgement and interest for a separate, earlier manipulation of Kentucky USA Energy, and a penny stock bar. This library classifies the conduct as pump and dump. The release records disgorgement of $4,600,000. A parallel criminal matter is referenced in the release.

The record

What was ordered

Civil penalty

—

Disgorgement

$4.6m

Prejudgment interest

—

Total relief

$4.6m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

the Securities and Exchange Commission announced this matter on May 28, 2015 as release LR-23269. The respondents named are Adam S. Gottbetter, Mitchell G. Adam, and K. David Stevenson (2 individuals, 0 entities).

The complaint describes three schemes by a securities lawyer, the last with two Canadian promoters: fraudulent trades by trading algorithm to create the appearance of liquidity in HBP Energy, followed by a planned call-centre and roadshow campaign and the sale of the group's shares to investors. The FBI arrested one promoter before the manipulation and promotion could launch. The release charges Section 5 and Section 17(a) and Rule 10b-5 violations; it does not charge Section 17(b), so this library tags the matter as pump and dump rather than paid stock promotion.

This library tags the matter as pump and dump, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

The conduct is recorded against equities.

The release references a parallel criminal proceeding. Where a criminal case exists, the civil and criminal outcomes are recorded separately, because they resolve on different standards of proof.

The relief recorded in our data is disgorgement of $4,600,000. Penalty and disgorgement are distinct: disgorgement returns the gain, while the penalty is punitive. We store them separately so that aggregate figures across the library are not double-counted.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Pump and dump — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2015-05-28 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.