SEC alleges MMA manager engaged in fraud

Jason Genet, a prominent Phoenix-based manager of mixed martial artists including Shane Carwin, Benson Henderson and Efrain Escuedro, is alleged to have acted in concert with other parties to perpetrate a “pump and dump” manipulation of the common stock of China Energy Savings Technology, Inc., according to a complaint filed by the Securities and Exchange Commission.

The suit, filed in September in the U.S. District Court in the Eastern District of New York, alleges that from at least 2004 through 2006 Genet helped China Energy, a now defunct company, falsely obtain a listing on the Nasdaq National Market System; engage in unregistered distributions of securities; and enter into “secret arrangements to give away China Energy stock to persons who agreed to purchase China Energy stock in the market, and thereby created the false and misleading impression of active trading and interest in China Energy.”

The SEC complaint alleges Genet “realized in excess of $1,700,000 from his sales of China Energy shares.”

When contacted by SI.com, Genet declined to comment on “ongoing litigation.”

Read more: http://sportsillustrated.cnn.com/2009/writers/josh_gross/12/22/barnett.notes/#ixzz0vDplgKb2