Securities and Exchange Commission v. Nicolas Arkells

I. INTRODUCTION

On August 24, 2022, plaintiff United States Securities and Exchange Commission (“SEC”) filed this action against defendant Nicolas Arkells (“Arkells” or “defendant’”). Dkt. 1 (‘Compl.”). The SEC asserts six claims for relief: (1) fraud in connection with the purchase or sale of securities in violation of Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. 78}(b), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5; (2) fraud in the offer or sale of securities in violation of Sections 17(a)(1), (2). and (3) of the Securities Act of 1993 (“Securities Act”), 15 U.S.C. § 77q(a): (3) aiding and abetting in violation of Section 17(a) of the Securities Act, 15 U.S.C. § 77q(a); (4) aiding and abetting in violation of Section 10(b) of the Exchange Act, 15 U.S.C. § □□□□□□ and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5; (5) unregistered offer and sale of securities in violation of Sections 5(a) and S(c) of the Securities Act, 15 U.S.C. § 77e; and (6) acting as an unregistered broker dealer in violation of Section 15(a) of the Exchange Act, 15 U.S.C. § 780(a). Compl. 41-63. On May 22, 2023, this case was consolidated with SEC v. C3…