SEC v. Craig A. Zabala (2020)

Settled

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In September 2020 the SEC charged Craig Zabala over a scheme to raise about US$4.38 million from investors in Concorde Group Holdings. On 3 February 2021 the Southern District of New York entered a consent judgment enjoining him and ordering US$2,435,816 in disgorgement and US$349,435.65 in interest, offset by any criminal restitution.

The record

What was ordered

Civil penalty

—

Disgorgement

$2.4m

Prejudgment interest

$349k

Total relief

$2.8m

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 SEC announced the complaint on September 24, 2020 (LR-24913) in the Southern District of New York, covering February 2015 to August 2019; the girlfriend is a relief defendant. The complaint asked for injunctions, disgorgement, interest and penalties; the judgment is described below.

The Ponzi tag is removed because the release is headed an offering fraud, with the affiliate's payments to earlier investors one of several uses.

Outcome. The final judgment signed on 3 February 2021 records Zabala's consent, without a trial. It permanently enjoins him from violating Section 17(a) of the Securities Act and Section 10(b) and Rule 10b-5 of the Exchange Act, and orders disgorgement of US$2,435,816 with prejudgment interest of US$349,435.65, a total of US$2,785,251.65, to be offset by the restitution order in the parallel criminal case, United States v. Zabala. The judgment contains no civil penalty.

What the sources do not show: the criminal case's outcome and sentence were not confirmed from a source opened for this record, so none is recorded. The relief defendant named in the complaint was not covered by this judgment.

Timeline

1. 2020-09-24 Litigation release published
2. 2021-02-03 Final consent judgment entered against Zabala

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
• Final judgment as to Craig A. Zabala (3 February 2021)

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.

Record added September 10, 2026. submit a correction.