Fraudster Hijacked FIVE Companies for Ruthless Pump-and-Dump!

SEC v. Saied Jaberian — U.S. Securities and Exchange Commission Litigation Release No. 26288, dated April 17, 2025.

The SEC secured a partial victory against Saied Jaberian for his role in a "pump-and-dump" scheme involving at least seven public companies. Jaberian hijacked defunct companies and manipulated their stock prices. He pleaded guilty to criminal securities fraud and faces injunctions, a penny stock bar, and an officer/director bar.

In Plain English

Imagine someone buys a bunch of cheap toys that nobody wants anymore. Then, they tell everyone these toys are suddenly super popular and valuable, making people rush to buy them. Once the price goes up because of all the new buyers, the person quickly sells all their own toys for a big profit, leaving the new buyers with toys that are suddenly worthless again. This is like a "pump-and-dump" scheme with stocks.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Acquire Control of Dormant Companies Between September 2017 and April 2019, Saied Jaberian and co-defendants allegedly took control of at least five defunct public issuers. This involved acquiring companies that were no longer actively operating or whose stock was trading at very low values.
2. Prepare for Manipulation Once control was established, the defendants prepared to 'pump' the stock. This likely involved acquiring a significant number of shares at a low price before initiating promotional activities.
3. Inflate Stock Price ('Pump') The scheme involved artificially inflating the stock prices of these companies. This was achieved through various promotional activities designed to create a false sense of demand and value.
4. Promote to Investors The defendants then engaged in activities to encourage investors to buy the stock. While specific promotional materials are not detailed, the goal was to create a buying frenzy.
5. Sell Shares ('Dump') As investors bought into the inflated stock, Jaberian and his associates sold their own shares at the artificially high prices. This allowed them to profit from the price increase they engineered.
6. Repeat with Other Issuers The scheme was not limited to a single company; it extended to at least seven public issuers in total, indicating a pattern of conduct over a significant period.

The Enforcement Action

On April 9, 2025, Judge David S. Doty of the United States District Court for the District of Minnesota granted the SEC’s motion for partial summary judgment against Saied Jaberian. The Court found Jaberian violated securities laws with respect to one public company’s stock, based on his guilty plea in a parallel criminal proceeding. The Court enjoined Jaberian from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Jaberian was also barred from participating in an offering of any penny stock or acting as an officer or director of a public company. Determination of financial relief, including disgorgement, prejudgment interest, or civil penalties, was reserved for a later date. In the parallel criminal action, Jaberian pleaded guilty to one count of criminal securities fraud and was sentenced to two years of probation.

Named in this action: Saied Jaberian.

Original SEC litigation release ↗ · Browse all cases