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by Mike Caswell

The U.S. Securities and Exchange Commission has permanently banned Drew Ciccarelli, a South Carolina man charged for the pump-and-dump of Rarus Technologies Inc., the supposed developer of a social media advertising platform. The SEC claimed that Mr. Ciccarelli helped an unnamed B.C. resident and another man run stock market schemes with Rarus and other companies over a six-year period. He moved $4-million in promotional payments from hidden insiders, collecting a $500,000 fee for his efforts. (All figures are in U.S. dollars.)

The ban for Mr. Ciccarelli is contained in a proposed judgment filed on Tuesday, Aug. 20, in federal court in Boston. The order bars him from penny stocks and restrains him from any future violations. The judgment represents a negotiated settlement, and still requires approval from the judge.

The ban is a footnote to a larger case against Mr. Ciccarelli, in which he pleaded guilty to a related criminal charge in Boston and received one year in prison. Prosecutors described Mr. Ciccarelli's role in the scheme as being "very serious." They said that he allowed hidden insiders to promote stocks, keeping investors unaware of the "stark conflict-of-interest at play." His actions allowed undisclosed insiders to unload their stock before the promotions ended and before the share prices of the companies abruptly declined.

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