SEC v. James M. Farinella, et al. (matched orders, 2017)

Settled

✓ Checked against the primary document on October 4, 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-james-m-farinella-et-al-matched-orders-2017) by email

In June 2017 the SEC alleged that Pazoo, Inc. stock was promoted and matched-traded so a controlling holder, James Farinella, could dump shares for over $1 million. A consent final judgment against Farinella was entered on August 28, 2020, with a penny stock bar and $1,076,304 in disgorgement and interest deemed satisfied by a criminal forfeiture. The other defendants were not checked.

The record

What was ordered

Civil penalty

—

Disgorgement

$1.1m

Prejudgment interest

—

Total relief

$1.1m

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 June 21, 2017 as release LR-23864. The respondents named are James M. Farinella, et al. (1 individual, 0 entities).

The complaint alleges that a controlling holder paid a promotion firm to promote Pazoo and to run matched trades, and dumped his shares for over $1 million. The charges are Section 17(a), Section 9(a) and Section 10(b); no Section 17(b) or concealed-payment allegation is made, so the paid-promotion tag has been replaced.

This library tags the matter as matched orders and 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.

Non-monetary relief recorded: penny stock bar.

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.

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.

Outcome: the court filing entered in the District of New Jersey on August 28, 2020 (signed August 21) is a final judgment as to Farinella alone. He consented to it and waived findings of fact. It permanently enjoins him under Exchange Act Sections 9(a) and 10(b) and Securities Act Section 17(a), and permanently bars him from participating in penny stock offerings. It makes him liable for $1,076,304 in disgorgement and prejudgment interest, deemed satisfied by the forfeiture order in his criminal case, and sets no civil penalty. The amount is stored as disgorgement, though it combines interest. The judgment does not cover the promotion firm or the other named defendants, whose outcomes were not checked. Checked on 2026-10-04.

What technique is this, and how does it work?

This action is tagged with 2 techniques 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.

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

Timeline

1. 2017-06-21 Litigation release published
2. 2020-08-28 Final judgment entered by consent as to James M. Farinella

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 James M. Farinella (D.N.J.)

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.