SEC Obtains Nearly Nine Million Dollar Final Judgment Against Vika Ventures LLC

The Securities and Exchange Commission (SEC) has successfully obtained a conclusive ruling against Vika Ventures LLC (“Vika”), a defendant previously charged with engaging in fraudulent activities related to the fraudulent offering and sale of securities tied to private companies that were potentially on track for an initial public offering (IPO). It was revealed that Vika had never actually possessed or acquired the pre-IPO securities as they had claimed.

The original complaint, filed on December 7, 2022, in the United States District Court for the Middle District of Georgia, asserted that Vika Ventures, alongside its co-founder George Iakovou, portrayed Vika as a genuine venture capital firm while utilizing it to orchestrate the pre-IPO scheme. This deceptive behavior led to the defrauding of more than $6 million from a minimum of 46 individual investors. Furthermore, the complaint highlighted the role of Penelope Zbravos, whose actions at Vika inadvertently contributed to perpetuating the fraudulent scheme.

The legal proceedings have since resulted in significant judgments:

1. On June 22, 2023, the district court issued a consent judgment involving Zbravos. The judgment restrains her from participating in further violations of Section 17(a)(3) of the Securities Act of 1933. It also stipulates that the court will determine any subsequent financial remedies following a motion by the Commission.
2. On June 30, 2023, the district court entered Amended Default Judgments against Iakovou and Vika. These judgments bar both defendants from future infractions of the antifraud provisions outlined in the Securities Act and the Securities Exchange Act of 1934. Additionally, specific injunctions are imposed, including an officer and director bar against Iakovou. The judgments grant authority to the Commission to subsequently seek appropriate monetary relief against these defendants.
3. On August 7, 2023, the Commission petitioned the district court for penalties against Vika. This motion was approved by the district court on August 9, 2023, resulting in the entry of a Final Judgment against Vika. This judgment specifically restrains Vika from violating Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act. It further addresses Exchange Act Rules 10b-5(a), (b), and (c). As part of the resolution, Vika is ordered to pay a civil money penalty amounting to $8,929,120.

These actions underscore the SEC’s commitment to upholding the integrity of the financial markets and safeguarding investors from deceptive and fraudulent practices.