SEC v. Joshua Sason, et al. (Corrected) (unregistered distributions, 2023)

Settled

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In May 2023 the court granted the SEC partial summary judgment on Section 5 claims in a microcap case against Magna Group, Joshua Sason and others. On May 2, 2024 final consent judgments were entered against Sason, Marc Manuel and three Magna entities, with combined disgorgement of $2,230,000, interest of $192,336.70 and penalties of $290,000.

The record

What was ordered

Civil penalty

$290k

Disgorgement

$2.2m

Prejudgment interest

$192k

Total relief

$2.7m

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

On May 12, 2023 the SEC announced that on May 4, 2023 the Southern District of New York granted it summary judgment on its non-fraud claims in a case filed in February 2019. The court found Marc Manuel and the Magna entities violated Securities Act Section 5 through sales of unregistered Lustros and NewLead stock, and that Pallas Holdings, Kautilya Sharma and Perian Salviola violated Section 5 through NewLead sales. It denied the SEC's motion on the Section 5 claim against Magna's owner Joshua Sason, leaving that claim and the fraud claim against Manuel and Magna for trial; it had earlier dismissed the fraud claims against Sason. This record is dated to that May 2023 announcement.

This library tags the matter as unregistered distributions, based on the conduct the document describes. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

Outcome: SEC release LR-25997 reports that on May 2, 2024 the court entered final judgments by consent, without admission or denial, against Sason, Manuel and the Magna entities (Magna Group, Magna Equities II and MG Partners), and that these judgments, together with the SEC's consent to dismiss some fraud claims, resolved all remaining claims against those five defendants. Sason is enjoined from violating Sections 5(a) and 5(c) and ordered to pay disgorgement of $450,000 plus interest of $38,610.54. Manuel is enjoined, ordered to pay a $90,000 penalty and barred for two years from participating in a penny stock offering. Magna Group is enjoined and ordered to pay disgorgement of $394,032.86, interest of $33,808.50 and a $70,000 penalty. Magna Equities II and MG Partners are each enjoined and ordered to pay disgorgement of $692,983.57, interest of $59,958.83 and a $65,000 penalty. The recorded figures add all five defendants' amounts as the release states them, without adjusting for any overlap between the two Magna entities. The release does not say how the claims against Pallas Holdings, Sharma and Salviola ended, and that was not checked.

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.

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

Timeline

1. 2023-05-12 Litigation release published
2. 2024-05-02 Final consent judgments entered against Sason, Manuel and the Magna entities (S.D.N.Y.)

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
• SEC release on final judgments (LR-25997)

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.