Andrew Hackett

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26222 / January 16, 2025

Securities and Exchange Commission v. Giguiere et al., Civil Action No. 18-cv-1530 (S.D. Cal. filed July 6, 2018; amended August 5, 2022 and April 7, 2023)

SEC Obtains Summary Judgment in Microcap Fraud Litigation

On November 18, 2024, the United States District Court for the Southern District of California granted the Securities and Exchange Commission’s motion for summary judgment against Andrew Hackett based on his criminal conviction for related conduct.

According to the SEC’s complaint, beginning in February 2017, Hackett and others engaged in a scheme in conjunction with a promotion of the stock of Arias Intel Corp. (“ASNT”).  The SEC alleged that in August 2017, Hackett bought ASNT shares from another defendant at a significant premium to the stock’s trading price as part of a scheme for Hackett to control the company’s shares.  According to the SEC’s complaint, the same month, a second defendant caused ASNT to issue to Hackett a convertible promissory note, enabling him to acquire more ASNT shares.  The group agreed that once ASNT reached a target price of $5.00 per share, Hackett would begin selling the shares and the group would then split the proceeds.  The complaint further alleged that Hackett sold ASNT stock to an undercover FBI agent as part of an intended matched trading scheme.

The SEC moved for summary judgment against Hackett on its causes of action and the relief sought in its complaint based on his criminal conviction. The Court found that Hackett violated Section 10(b) of the Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5(a) and (c) thereunder.  The Court further granted the SEC’s requests for the full amount of disgorgement and prejudgment interest sought (deemed satisfied by the order of restitution in his criminal case), a permanent injunction enjoining Hackett from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and a permanent penny stock bar.  On January 8, 2025, the Court entered a judgment against Hackett consistent with its summary judgment decision.

The SEC’s litigation was led by Christopher J. Dunnigan, Christine D. Ely, and Lindsay S. Moilanen of the SEC’s New York Regional Office and is being supervised by Sheldon L. Pollock and Daniel Loss.