SEC v. Jason A. Wallace (boiler rooms, 2016)
Judgment entered
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.
In September 2016 the SEC sued former boiler-room operator Jason Wallace over a scheme to inflate penny-stock prices. After a default judgment in May 2017, a final judgment on December 15, 2017 ordered $512,048.80 in disgorgement and interest and a $434,887.07 penalty, resolving the case.
The record
| Agency | SEC |
|---|---|
| Release number | LR-23656 |
| Date filed | 2016-09-27 |
| Date resolved | 2017-12-15 |
| Court | U.S. District Court, Central District of California |
| Status | judgment |
| Asset class | equities |
| Criminal parallel | Yes: convicted (Jason Wallace (pleaded guilty 5 November 2012; judgment of conviction 22 April 2016; sentence not stated; U.S. v. Wallace, SA CR-12-211-JVS)), U.S. District Court, Central District of California, 2016-04-22 |
| Bars imposed | penny stock bar |
| Defendants | Jason A. Wallace |
| Cited as charged or alleged | Exchange Act s.10(b) and Rule 10b-5 ; Exchange Act s.15(a) ; Exchange Act s.9(a)(2) ; Securities Act s.17(a) ; Securities Act s.5 ; 18 U.S.C. 371 (conspiracy) |
| Techniques | Boiler rooms , Pump and dump |
What was ordered
- Civil penalty
- $435k
- Disgorgement
- —
- Prejudgment interest
- —
- Total relief
- $435k
- Alleged gain
- —
What is alleged to have happened
the Securities and Exchange Commission announced this matter on September 27, 2016 as release LR-23656. The respondents named are Jason A. Wallace (1 individual, 0 entities). The action was brought in the U.S. District Court, Central District of California.
The complaint alleges that the operator of a boiler room cold-called buyers on behalf of two share sellers while not disclosing the sellers' commissions of up to 50 percent. Selling by cold call is not publicising for undisclosed pay, so the paid-promotion tag has been removed.
This library tags the matter as boiler rooms 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.
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.
SEC release 24016 reports that the Central District of California entered a final judgment against Wallace on December 15, 2017, following a default judgment on May 9, 2017. It enjoins him from violating the registration, antifraud and related provisions, bars him from penny-stock offerings and orders disgorgement and prejudgment interest totalling $512,048.80 and a civil penalty of $434,887.07; the release says this resolves the litigation in its entirety. Because he defaulted, the judgment was not reached after a contested hearing. The disgorgement and interest figure is combined in the release and is not split, so it is left out of the fields. 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.
- Boiler rooms — 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
- 2016-09-27 Litigation release published
- 2017-12-15 Final judgment against Wallace after default (SEC LR-24016)
Primary documents
Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.
Same matter
The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.
| Date filed | Agency | Record | Status |
|---|---|---|---|
| 2016-09-27 | SEC | SEC v. Jason A. Wallace (boiler rooms, 2016) | Judgment entered |
| 2017-12-18 | SEC | SEC v. Jason A. Wallace (boiler rooms, 2017) | Judgment entered |
Related actions
Other actions in the library sharing at least one technique tag with this one.
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Joseph R. Earle Jr, Barry D. Reagh, William Clayton, Francis T. Dudley, Steven E. Bryant, Upper Street Marketing, Inc. and Project Growth International, Inc. (boiler rooms, 2022) | SEC | 2022-12-05 | Boiler Rooms , Pump And Dump | — | filed |
| SEC v. Matthew Nicosia, William Reninger, Fabrizio Di Carlo, and Ronald Touchard (boiler rooms, 2022) | SEC | 2022-09-28 | Boiler Rooms , Pump And Dump | $453k | settled |
| SEC v. Francis Biller, et al. (pump and dump, 2022) | SEC | 2022-03-17 | Pump And Dump , Boiler Rooms | — | settled |
| SEC v. Talman Harris and Victor Alfaya (boiler rooms, 2019) | SEC | 2019-06-28 | Boiler Rooms , Pump And Dump | $500k | judgment |
| SEC v. Jason McDiarmid, et al. (boiler rooms, 2017) | SEC | 2017-09-29 | Boiler Rooms , Pump And Dump | $3.3m | judgment |
| SEC v. Marcus A. Luna, et al. (boiler rooms, 2016) | SEC | 2016-09-30 | Boiler Rooms , Pump And Dump | $15k | judgment |