Penny Stock Crooks Hijacked Shell Companies, Raked In Thousands!

SEC v. Saeid Jaberian, Christopher J. Rajkaran, Mark A. Miller — U.S. Securities and Exchange Commission Litigation Release No. 26467, dated January 27, 2026.

Three individuals, Mark A. Miller, Saeid Jaberian, and Christopher J. Rajkaran, were charged by the SEC for orchestrating a "pump-and-dump" scheme involving penny stocks. They allegedly took control of inactive companies, issued false statements, and manipulated stock prices. All three defendants have since pleaded guilty in parallel criminal actions and faced penalties including imprisonment, probation, and forfeiture, with the SEC's civil action now fully resolved through consent judgments and default judgments.

In Plain English

Imagine someone buys a bunch of cheap toys, then tells everyone they're super valuable and will be worth a lot of money. They get people excited and buying the toys. Once the price goes up because of all the buying, the person who started it all sells their toys for a big profit, leaving others with toys that aren't worth much anymore. This is what happened with some stocks, and the people involved are now facing consequences.

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 July 2017 and April 2019, Mark A. Miller, Saeid Jaberian, and Christopher J. Rajkaran worked together to take control of inactive penny-stock companies. This allowed them to use these companies as vehicles for their fraudulent activities.
2. Issue False and Misleading Statements Once in control, the defendants caused these companies to issue false and misleading statements to the public. These statements were designed to deceive investors about the companies' prospects and value.
3. Inflate Stock Prices (Pump) The false statements were intended to artificially inflate the stock prices of the companies they controlled, as well as two other public issuers. This created a false sense of demand and value in the market.
4. Sell Stock for Profit (Dump) As investors were drawn in by the inflated prices and misleading information, the defendants sold their own holdings in these stocks. This 'dumping' of shares at the peak of the artificial demand allowed them to realize significant profits.
5. Criminal Prosecution and Guilty Pleas In parallel criminal actions, Jaberian pleaded guilty to securities fraud and was sentenced to probation. Rajkaran and Miller also pleaded guilty to conspiracy to commit securities fraud, receiving prison sentences and ordered to pay criminal forfeiture.
6. SEC Civil Action Resolution The SEC's enforcement action concluded with final consent judgments against Jaberian and Miller, and a default judgment against Rajkaran. These judgments included permanent injunctions and bars from participating in penny stock offerings or acting as officers/directors of public companies.

The Enforcement Action

On January 26, 2026, the U.S. District Court for the District of Minnesota entered a final consent judgment against Saeid Jaberian, resolving the SEC's enforcement action. Jaberian was ordered to pay disgorgement of $66,749 plus $10,348 in prejudgment interest. Permanent injunctions were entered, enjoining him from violating 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. He was also barred from participating in any penny stock offering or acting as an officer or director of a public company. On December 5, 2024, a default judgment was entered against Christopher Rajkaran, enjoining him from similar violations and barring him from penny stock offerings and officer/director roles. He was held liable for $68,001 in disgorgement plus $10,223 in prejudgment interest, with a portion satisfied by criminal forfeiture. On February 12, 2025, following Mark A. Miller's consent to injunctive relief, he was ordered liable for $126,007 in disgorgement plus $9,536 in prejudgment interest, with a portion satisfied by criminal forfeiture. The SEC's litigation was handled by Alyssa A. Qualls, Robert M. Moye, and Raven A. Winters.

Named in this action: Saeid Jaberian, Christopher J. Rajkaran, Mark A. Miller.

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