BOGUS NOTE FUELS PENNY-STOCK SCAM: SWINDLERS CASH IN BIG!

SEC v. Benjamin Ballout, Mohamed Zayed, William Fielding — U.S. Securities and Exchange Commission Litigation Release No. 26331, dated June 20, 2025.

The SEC charged Benjamin Ballout, Mohamed Zayed, and William Fielding with a "pump and dump" scheme involving Enerkon Solar International, Inc. stock. Ballout allegedly inflated the stock price with false statements, while Fielding and Zayed profited by converting a bogus note into stock and selling it at inflated prices. Final judgments were entered against all three defendants, imposing penalties and injunctions.

In Plain English

Imagine someone buys a lot of a company's stock and then tells everyone it's going to be super successful, using fake news and exciting promises. This makes the stock price go way up. Then, they quickly sell their own shares at the high price, making a lot of money. When the truth comes out, the stock price crashes, and other investors lose their money. That's what happened here with Enerkon Solar International stock.

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. Inflating Stock Price Benjamin Ballout allegedly boosted the stock price of Enerkon Solar International, Inc. He did this by making false and misleading statements and hiding important information in public disclosures to investors.
2. Creating a Bogus Note William Fielding and Mohamed Zayed were involved in converting a "bogus promissory note" into Enerkon stock. This note was likely fabricated or misrepresented to justify the stock conversion.
3. Selling Inflated Stock Using the inflated stock obtained from the bogus note, William Fielding then sold shares to a third party. These sales occurred at prices that were artificially high due to Ballout's manipulation.
4. Profiting from the Scheme Both Fielding and Zayed profited from this scheme by selling the overvalued Enerkon stock. They capitalized on the artificially created market price.

The Enforcement Action

On June 11, 2025, the SEC obtained final judgments against Benjamin Ballout and Mohamed Zayed for their roles in a "pump and dump" scheme involving Enerkon Solar International, Inc. stock. Ballout allegedly inflated stock prices through false statements. Fielding and Zayed profited by converting a bogus promissory note to stock, which Fielding sold at inflated prices. A final judgment by consent was entered against William Fielding on November 19, 2024. The judgments resolved all claims. On May 8, 2025, the Court granted the SEC's motion for summary judgment against Ballout and Zayed. The June 11, 2025 judgments ordered Ballout and Zayed each to pay a $460,928 civil penalty. Zayed was also ordered to pay $96,000 in disgorgement plus $25,288.33 in prejudgment interest. The judgments permanently enjoin Ballout and Zayed from future violations of antifraud provisions (Securities Exchange Act of 1934 Section 10(b) and Rule 10b-5; Securities Act of 1933 Section 17(a)), from participating in penny stock offerings, and bar Ballout from serving as an officer or director of a public company. The litigation was led by Pat Disbennett and supervised by Keefe Bernstein of the SEC’s Fort Worth Regional Office.

Named in this action: Benjamin Ballout, Mohamed Zayed, William Fielding.

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