SEC-LR-26170

Auerbach et al.
SEC Litigation Release No. 26170 / November 18, 2024
SEC Obtains Final Judgment Against Defendant for Receiving Kickbacks in Bribery Scheme

Excerpt:

The Securities and Exchange Commission announced that is has obtained final judgement against Lakenya Hopkins for her role in a promissory note selling scheme, falsely promising investors extraordinary returns.

On November 7, 2024, the Honorable Jed S. Rakoff, United States District Court Judge for the Southern District of New York, issued an Order approving the SEC’s settlement with Lakenya Hopkins and entered Final Judgement. The SEC’s complaint alleges that, between late 2020 and early 2021, Hopkins and her company, Money Magnet Platinum Membership Initiative (MMPMI), solicited more than one hundred prospective investors to invest in MMPMI through promissory notes they called “magnets.” As alleged in the Complaint, MMPMI and Hopkins, without a reasonable basis, promised investors guaranteed and extraordinary monthly returns for each magnet they purchased. Additionally, the Complaint alleges, Hopkins misappropriated investor funds for her own benefit.

In September 2022, the SEC charged MMPMI and Hopkins with violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act of 1934, and Rule 10b-5 thereunder. The Final Judgment includes permanent injunctions against future violations of the antifraud provisions of the federal securities law and requires Hopkins to pay full disgorgement of $262,280, plus prejudgment interest of $20,056, which has been deemed satisfied by the order of restitution of $289,630 entered against her in a parallel criminal matter.

In 2023, the Court entered judgments as to Hopkins and MMPMI, granting the SEC injunctive relief and leaving open the issue of monetary relief. The Final Judgment for Hopkins reaffirms the injunctive relief against her while resolving the issue of monetary relief. The SEC is foregoing seeking monetary relief against MMPMI.

Agency:

SEC-PR-2411

Catagories:

Bribery Schemes

Final Judgements

Documents:

Final Judgment – Richard Brown (PDF 9-pages)