Defendant Name: Pegasus Wireless Corporation

Defendant Type: Public Company
SIC Code: 3661
CUSIP: 70558E10

Initial Case Details

Legal Case Name SEC (Plaintiff) v. Pegasus Wireless Corporation, Jasper Knabb, and Stephen Durland (Defendants), and Aero-Marine, LLC and Tammy Knabb (Relief Defendants)
First Document Date 26-May-2009
Initial Filing Format Civil Proceeding
Case Number 09-cv-02302
Allegation Type Issuer Reporting and Disclosure
Federal District Court California, Northern District of California

Violations Alleged

Exchange Act
• Sec 10(b) + Rule 10b-5
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
Securities Act
• Sec 5
• Sec 5(a)
• Sec 5(c)
• Sec 17(a)(1)
• Sec 17(a)(2)
• Sec 17(a)(3)
• Sec 17(a) (Not specified)
Additionally, Jasper Knabb is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 12b-20 of the Exchange Act.
Stephen Durland is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 12b-20 of the Exchange Act.
Jasper Knabb is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Sec 13(a) of the Exchange Act.
Stephen Durland is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Sec 13(a) of the Exchange Act.
Jasper Knabb is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 13a-1 of the Exchange Act.
Stephen Durland is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 13a-1 of the Exchange Act.
Jasper Knabb is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 13a-11 of the Exchange Act.
Stephen Durland is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 13a-11 of the Exchange Act.
Jasper Knabb is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 13a-13 of the Exchange Act.
Stephen Durland is alleged to have aided and abetted Pegasus Wireless Corporation's violation of Rule 13a-13 of the Exchange Act.

Resolutions

First Resolution Date 12-Aug-2011
Headline Total Penalty and Disgorgement $7,788,927

Related Documents:

comp21060 26-May-2009 Complaint
Complaint
The Commission stated: "This matter involves a securities fraud scheme by officers of Pegasus Wireless Corp., a once high-flying technology company that was based in Fremont, California. . . . [T]he defendants violated the antifraud, registration, and other provisions of the federal securities laws, and caused Pegasus to file numerous false reports with the Commission."
LR-21060 27-May-2009 Litigation Release
SEC Charges Wireless Company Executives in $30 Million Stock Dumping Scheme
The SEC "announced the filing of securities fraud charges against Pegasus Wireless Corporation and two of its senior officers who defrauded investors by illegally selling hundreds of millions of Pegasus shares they secretly controlled and lying about the transactions in company filings."
court_doc133_09-cv-02302 12-Aug-2011 Court Docket Document
Default Judgment Against Defendant Pegasus Wireless Corporation
On August 12, 2011, the Court issued a final judgment against Pegasus Wireless Corporation stating: "the Court finds that the well-pleaded allegations of the Complaint are sufficient to find that Pegasus committed the violations of the federal securities laws alleged against it in the Complaint in this action and that, unless it is permanently restrained and enjoined, there is a reasonable likelihood that Pegasus will commit further violations of such laws."

Other Defendants in Action:

Jasper Knabb
Stephen Durland
Aero-Marine, LLC
Tammy Knabb