Securities and Exchange Commission v. Carl Jensen

I. INTRODUCTION AND BACKGROUND

On August 24, 2021, the Securities and Exchange Commission (“SEC”) filed this action against Carl Jensen and Stephen W. Gold as defendants and Kerry Margolis and Michael Hock as relief defendants. Dkt. 1 (“Compl.”). The SEC’s complaint brings three claims for relief: (1) Fraud in Connection with the Purchase and 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(b) (against defendant Jensen); (2) Fraud in the Offer or Sale of Securities, in violation of Section 17(a) of the Securities Act of 1933 (“Securities Act’), 15 U.S.C. § 77(q)(a) (against defendant Jensen); and (3) Aiding and Abetting Violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder (against defendant Gold). Id. 4] 89-103. Defendant Jensen is a Canadian citizen who likely resides in Australia, though his exact physical location is unknown. Id. § 14; Dkt. 10 at 2. Defendant Gold is a citizen of Great Britain currently residing in Tarzana, California. Compl. § 15. Relief defendant Margolis is an…