SEC suing investor, saying he tried to bolster stock

A Newport Beach investor has been caught up in a federal crackdown on stock manipulation.

According to an indictment filed by Philadelphia prosecutors, National Lampoon’s chief executive and six others, including Newport Beach investor Alex Kanakaris, were accused of manipulating stock in three separate schemes. The Securities and Exchange Commission is also suing Kanakaris.

Authorities accused Kanakaris of paying off allegedly crooked stock promoter, Eduardo Rodriguez, 49, to buy up stock in a company in which Kanakaris invested to create the illusion of market interest and drive up the price. Rodriguez is the central figure in the scheme alleged by authorities.

Officials say Kanakaris paid $15,000 to Rodriguez and a witness secretly cooperating with the FBI in order to illegally bolster the value of his stock in SwedishVegas Inc., a company with the stated goal of launching themed restaurants.

— Alan Blank