Jeremy Koski
U.S SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25820 / September 1, 2023
Securities and Exchange Commission v. Jeremy Koski, No. 23-civ-07779 (S.D.N.Y filed September 1, 2023)
SEC Charges Internet Message Board User in Alleged Market Manipulation Scheme
On September 1, 2023, the Securities and Exchange Commission charged Jeremy Koski, a resident of Hawaii, with securities fraud in connection with his manipulation of the trading market for structured equity securities backed by certain J.C. Penney Company, Inc. debentures ("JCP Debentures"), which trade over the counter under the symbol COTRP. The Commission alleges that Koski fabricated and anonymously posted fake documents on internet message boards under different usernames in order to boost the trading price of COTRP and increase the value of his large position in the stock.
As alleged in the SEC's complaint, in May 2021, Koski posted fake notices on U.S. Bank letterhead falsely stating that the JCP Debentures would be redeemed early at their full value, causing a 75% spike in the price of COTRP. In September and November 2021, Koski also allegedly fabricated and disseminated phony COTRP press releases purporting to announce that "COTRP will be the first publicly traded security fund to convert to a cryptocurrency," and that this "cryptocurrency conversion" would "allow the fund to recover the face value of $25 as it opens up to a new world of digitized currency." As alleged, Koski knew that these statements were false.
The SEC's complaint, filed in the U.S. District Court for the Southern District of New York, charges Koski with violating Section 17(a) of the Securities Act of 1933, Section 10(b) the Securities Exchange Act of 1934 and Rule 10b-5. The complaint seeks a permanent injunction against future violations of these antifraud provisions, a conduct-based injunction, civil monetary penalties, and a penny stock bar.
The investigation of this matter was conducted by Mariel Bronen, Daphne Downes and George Stepaniuk and was supervised by Tejal D. Shah of the SEC's New York Regional Office. The litigation is being led by Christopher Colorado and Ms. Bronen. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York and the Federal Bureau of Investigation.
Last Reviewed or Updated: Sept. 1, 2023