SEC v. Karen F. Aalders (pump and dump, 2017)

Settled

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In 2017, the Securities and Exchange Commission published a release announcing a settlement of findings that a nominee officer assisted a shell-company stock distribution and promotion scheme. This library classifies the conduct as pump and dump and unregistered distributions. The release records disgorgement of $46,500.

The record

What was ordered

Civil penalty

—

Disgorgement

$46.5k

Prejudgment interest

$5.1k

Total relief

$51.6k

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 July 31, 2017 as release 3-18085. The respondents named are Karen F. Aalders (1 individual, 0 entities).

The order finds that a nominee officer of Mainstream Entertainment helped its control person take it public as an undisclosed shell, forged documents, assisted in selling unrestricted shares and wired about $243,000 to a promoter. She was not promoting for undisclosed pay, so the paid-promotion tag has been replaced. Disgorgement of $46,500 is ordered.

This library tags the matter as pump and dump 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, with OTC identified in the release.

The relief recorded in our data is disgorgement of $46,500. Penalty and disgorgement are distinct: disgorgement returns the gain, while the penalty is punitive. We store them separately so that aggregate figures across the library are not double-counted.

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.

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.

• Pump and dump — 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. 2017-07-31 Administrative proceeding instituted (cease-and-desist)

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 order

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.

Related actions

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

Record added September 10, 2026. submit a correction.