Today, after a nine-day trial, a jury in the United States District Court for the District of Massachusetts found Canadian residents Zhiying Yvonne Gasarch and Jackson Friesen liable for their roles in long-running fraudulent schemes involving trading in microcap securities.

Statement of SEC Division of Enforcement Director Gurbir S. Grewal

“We are pleased with today’s jury verdict holding the two remaining defendants in this case liable for securities fraud and other charges. Despite their efforts to conceal their control and ownership of penny stock companies and to defraud unwitting retail investors in the U.S. markets, these defendants will now be held accountable thanks to the hard work of the SEC team. As this trial demonstrates, the SEC is committed to holding fraudsters, including those located outside the U.S., accountable for their violations of the federal securities laws.”

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More information:

The SEC filed its civil complaint on August 12, 2021: https://www.sec.gov/litigation/litreleases/lr-25164

On May 12, 2022, the SEC obtained a final judgment against Frederick L. Sharp, the mastermind of the scheme:
https://www.sec.gov/litigation/litreleases/lr-25392