The Securities and Exchange Commission brought charges against Justin W. Keener and JMJ Financial for failing to register as a securities dealer with the SEC. Keener allegedly traded billions of newly issued shares of penny stock, making profit of millions of dollars.
The SEC’s complaint was filed in federal court of Miami. It claims that between January 2015 and January 2018 Keener purchased convertible notes from penny stock issuers, converting them into shares of stock at a significant discount from the market price and selling them into the market for a large profit. The complaint claims that Keener bought convertible notes from over 100 issuers and sold over 17.5 billion shares of newly issued penny stock, making more than $21.5 million profit. Keener was not registered dealer with SEC, which violates the mandatory registration provisions of the federal securities law.
