Securities Regulation Daily Wrap Up, FRAUD AND MANIPULATION—D.N.J.: COO of early-state medical device company owes $98,083 in disgorgement, (May 18, 2026)

By Jay Fishman, J.D.

The disgorgement, however, was satisfied in a parallel criminal case against him.

The District Court for New Jersey entered a final judgment against the Chief Operating Officer of an early-stage medical device company who didn’t tell investors he used $200,000 of their $400,000 invested funds to pay his personal expenses. The court permanently enjoined him from further violating federal securities laws, banned him and his associates from acting as officers or directors, and ordered him to pay $98,083 in disgorgement. The disgorgement, however, was satisfied in a parallel criminal case against him for which he pled guilty on June 10, 2025 (SEC v. Geromini, No. 21-cv-12880 (D.N.J. May 8, 2026)).

The COO’s medical device company fraud. A New Jersey early-stage medical device company’s former Chief Operating Officer settled with the SEC for materially misleading investors about his use of the $2.4 million raised from them, particularly his taking $200,000 of the funds for personal use. For the COO’s having violated Exchange Act Section 10(b)/Rule 10b-5 and Securities Act Section 17(a), the Commission’s complaint before New Jersey’s District Court requested a permanent injunction from future federal securities law violations and a ban from his ever becoming a public trading company’s officer or director, along with disgorgement, prejudgment interest, and a civil monetary penalty (SEC v. Geromini, No. 1:21-cv-12880 (D.N.J. June 23, 2021)).

This case is No. 1:21-cv-12880-CPO-SAK.

Judge: O’Hearn, C.

Attorneys: Kara Sweet for the SEC.

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