SEC v. Zev Saltsman, et al. (unregistered distributions, 2019)

Judgment entered

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In 2019 the SEC obtained consent judgments against Menachem Eitan and Zev Saltsman, enjoining them from Section 5 and other violations in a scheme involving Xybernaut and Ramp stock; Eitan owes $500,000 and Saltsman $5 million deemed satisfied by criminal restitution.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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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 June 5, 2019 the Eastern District of New York entered consent judgments against Menachem Eitan and Zev Saltsman, announced on July 17, 2019. The 2007 complaint alleged they led an investor group in a scheme to buy control blocks of Xybernaut and Ramp stock while misleading the public, and sold unregistered shares and failed to file ownership reports. The judgments enjoin Section 17(a), Section 10(b), Sections 5(a), 5(b)(2) and 5(c), and Sections 13(d) and 16(a) violations. Eitan is ordered to pay $500,000 in disgorgement; Saltsman $5 million, deemed satisfied by criminal restitution. The record previously showed only the $500,000 figure, which is Eitan's, against Saltsman's name; disgorgement is now left blank because the two defendants' figures differ. A parallel criminal matter exists.

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.

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 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. 2019-07-17 Litigation release published

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

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.