SEC v. Stubos, et al. (undisclosed control blocks, 2022)

Settled

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In June 2022 the SEC sued Canadian resident George Stubos over an alleged concealed-control microcap scheme, and froze assets. On September 8, 2023 he consented to a judgment with $5,367,926 in disgorgement, $806,108 in interest, a penny stock bar and a conduct-based injunction; his wife, a relief defendant, consented to a judgment on April 15, 2024.

The record

What was ordered

Civil penalty

—

Disgorgement

$5.4m

Prejudgment interest

$806k

Total relief

$6.2m

Alleged gain

$10m

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 8, 2022 as release LR-25411. The respondents named are Stubos, et al. (1 individual, 0 entities). The action was brought in the U.S. District Court, Southern District of New York.

The complaint alleged concealed control of thinly traded microcaps, hired promoters and sales into the demand, with an asset freeze. No concealed-payment allegation is made, so the paid-promotion tag has been replaced.

This library tags the matter as undisclosed control blocks 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.

Outcome. SEC litigation release LR-25824 (September 12, 2023) reports that on September 8, 2023 the Southern District of New York entered a consent judgment against George Stubos, who neither admitted nor denied the allegations. It enjoins him from the antifraud provisions and Exchange Act Section 9(a), bars him from penny stock offerings and bars him from participating in securities offerings other than for his own accounts, and orders disgorgement of $5,367,926 and prejudgment interest of $806,108; the release shows no civil penalty. LR-25978 (April 15, 2024) adds that his wife, Dori-Ann Stubos, named as a relief defendant for receiving proceeds, consented to a judgment making her jointly liable with him for $1,775,000 of that disgorgement plus $533,108 in interest. Her share overlaps his and is not added to the figures stored.

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 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.

• Undisclosed control blocks — 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. 2022-06-08 Litigation release published
2. 2023-09-08 Consent judgment entered against George Stubos (LR-25824)
3. 2024-04-15 Consent judgment entered against relief defendant Dori-Ann Stubos (LR-25978)

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 litigation release LR-25824 (judgment against Stubos)
• SEC litigation release LR-25978 (judgment against relief defendant)

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.