SEC v. Carnovale, et al. (undisclosed control blocks, 2021)

Judgment entered

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In December 2021 the SEC sued Vincenzo Carnovale and Amar Bahadoorsingh over alleged secret control of microcap companies. A default judgment against Bahadoorsingh (March 31, 2023) and a consent judgment against Carnovale (January 2, 2024) were entered, together ordering $595,703 disgorgement, $108,157 interest and $430,412 in penalties.

The record

What was ordered

Civil penalty

$430k

Disgorgement

$596k

Prejudgment interest

$108k

Total relief

$1.1m

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

the Securities and Exchange Commission announced this matter on December 2, 2021 as release LR-25276. The respondents named are Carnovale, et al. (1 individual, 0 entities).

The release describes two Canadian residents who allegedly gained secret control of thinly traded microcap companies, hired promoters to create demand, hid their control, misled brokers and transfer agents about whether their shares could be sold, and sold into the market. The charges listed are Section 5 registration violations and Section 17(a) and Rule 10b-5 fraud; the release does not allege that any promoter's payment was concealed from readers, so the paid-promotion tag has been replaced with undisclosed control blocks and unregistered distributions.

This library tags the matter as undisclosed control blocks and unregistered distributions, based on the conduct the regulator describes. Each tag links to a page explaining how that technique works, what statute it engages, and what penalties comparable actions have attracted. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

The conduct is recorded against equities.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

Outcome: SEC release LR-25685 (March 31, 2023) reports a default final judgment against Amar Bahadoorsingh in the District of Massachusetts: disgorgement $231,020, interest $28,416, penalty $207,183, a penny stock bar and injunctions. Release LR-25919 (January 3, 2024) reports a consent final judgment on January 2, 2024 against Vincenzo Carnovale: disgorgement $364,683, interest $79,741, penalty $223,229, a penny stock bar and a conduct-based injunction. The figures in this record are the sums for the two men. The record's defendant field names only 'Carnovale, et al.'; the releases name these two individuals, and whether other defendants or relief defendants existed was not checked.

What technique is this, and how does it work?

This action is tagged with 2 techniques in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Undisclosed control blocks — see how it works, what statute it engages, and every other action tagged the same way.
• Unregistered distributions — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2021-12-02 Litigation release published
2. 2023-03-31 Default final judgment against Amar Bahadoorsingh (LR-25685)
3. 2024-01-02 Consent final judgment against Vincenzo Carnovale (LR-25919)

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• SEC litigation release LR-25685 (Bahadoorsingh judgment)
• SEC litigation release LR-25919 (Carnovale judgment)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 3 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.