SEC Seeks $2.78 Million Final Judgment in RBNW Penny Stock Manipulation Case
SEC proposes a final judgment against Benjamin Conde in the RBNW manipulation case, with a penny stock bar and a $2.78 million monetary award in federal court.
Summary
The Securities and Exchange Commission’s Litigation Release No. 26677, dated October 21, 2026, said the agency filed a proposed final judgment against Benjamin Conde on October 20 in SEC v. Benjamin Conde, et al., No. 19-cv-05404, in the U.S. District Court for the Eastern District of New York. The September 23, 2019 complaint alleged Conde acquired millions of Renewable Energy and Power, Inc. shares and, from March to July 2017, funded a boiler room promotion while coordinating matched and wash trades to inflate RBNW’s price and trading volume. He allegedly sold into the manipulated market at artificially high prices, profiting while retail investors suffered substantial losses.
Conde, who pleaded guilty to conspiracy to commit securities fraud and other charges in a parallel criminal case, consented to a court-approved permanent injunction covering Securities Act Section 17(a)(1) and (3), Exchange Act Section 10(b), Rules 10b-5(a) and (c), and Exchange Act Section 9(a)(1), plus a penny stock bar. The judgment would order $1,097,800 in disgorgement and $1,681,021.69 in prejudgment interest, totaling $2,778,821.69, deemed satisfied by criminal restitution and forfeiture orders. The judgment and voluntary dismissal of claims against Essex Global Investment Corp. and Facultas Capital Management, Inc. conclude the litigation. Andrew Elliott and Cecilia Connor investigated; James E. Smith and Matthew F. Scarlato litigated under James Carlson’s supervision, with assistance from the U.S. Attorney’s Office for the Eastern District of New York, FBI and FINRA.
Positives
- $2,778,821.69 in disgorgement and interest would formalize the monetary consequences, subject to court approval.
- A permanent antifraud and market-manipulation injunction would restrict Conde from repeating the alleged conduct.
- A penny stock bar would remove Conde from future participation in the market segment involved in the case.
- Conde pleaded guilty to conspiracy to commit securities fraud and other charges in the parallel criminal action.
- The proposed judgment and dismissal of relief-defendant claims would conclude litigation pending since September 23, 2019.
Risks & concerns
- Millions of RBNW shares allegedly supported matched trades, wash trades and a boiler room promotion from March to July 2017.
- Retail investors suffered substantial losses after Conde allegedly sold shares at artificially inflated prices.
- The $2,778,821.69 SEC obligation would be deemed satisfied by restitution and forfeiture orders already entered in the criminal case.
- The proposed final judgment remains subject to approval by the U.S. District Court for the Eastern District of New York.