Microcap Fraudsters Caught! Schemes Raked In Millions!

SEC v. Ongkaruck Sripetch, Amanda Flores, Brehnen Knight, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26332, dated June 20, 2025.

The SEC secured final judgments against seven individuals and one entity involved in illegal microcap fraud schemes. These schemes, which ran from August 2013 to December 2017, involved manipulative trading and pump-and-dump tactics affecting at least 20 companies. The judgments include permanent injunctions, officer-and-director bars, penny stock bars, and significant monetary penalties.

In Plain English

Imagine a group of people who secretly bought up lots of stock in small, unknown companies. Then, they spread exciting but fake news about these companies to get other people to buy the stock, making the price shoot up. Once the price was high, the original group would quickly sell all their shares, leaving the new investors with worthless stock. The SEC stepped in and stopped this, getting court orders against these individuals and companies, making them pay back money and banning them from the stock market.

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 Microcap Stocks Defendants, including Ongkaruck Sripetch and Brehnen Knight, began acquiring significant amounts of stock in small, publicly traded companies (microcaps) starting at least as early as August 2013.
2. Orchestrate 'Pump' Phase The defendants worked together to artificially inflate the stock prices of these microcap companies. This involved coordinated trading designed to create the illusion of high demand and price appreciation.
3. Disseminate False Information As part of the 'pump,' the defendants spread misleading and false information about the companies to potential investors. This was intended to create excitement and encourage unsuspecting investors to buy the stock.
4. Targeted Investor Base The schemes targeted at least 20 different issuers, suggesting a broad strategy to exploit various microcap stocks and a wide range of investors who might be susceptible to promotional hype.
5. Execute 'Dump' Phase Once the stock price was sufficiently inflated due to increased buying pressure from unsuspecting investors, the defendants would sell their own holdings. This 'dump' would flood the market with shares, causing the price to collapse.
6. Profit from Price Collapse The defendants profited from the price difference between their initial purchase price and the inflated price at which they sold, leaving other investors with significant losses as the stock became virtually worthless.
7. Repeat Scheme The manipulative trading and pump-and-dump schemes continued through at least December 2017, indicating a pattern of fraudulent behavior across multiple microcap stocks.

The Enforcement Action

On May 27, 2025, the SEC obtained a final judgment against Brehnen Knight for his role in illegal microcap fraud schemes. The SEC's complaint alleged that from August 2013 to December 2017, defendants engaged in manipulative trading and pump-and-dump schemes involving at least 20 issuers. With this judgment, the SEC has secured final judgments against all seven individual defendants and one related entity. Judgments included permanent injunctions, officer-and-director bars, penny stock bars, and monetary penalties totaling over $3.4 million in disgorgement and interest, plus additional civil penalties. Claims against eight corporate defendants were voluntarily dismissed.

Named in this action: Ongkaruck Sripetch, Amanda Flores, Brehnen Knight, Andrew McAlpine, Ashmit Patel, Michael Wexler.

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