via blogs.newsobserver.com

(Whether you're wearing a suit or a Hooters t-shirt, that's just never fun.)

In a story covered by our very own Zak Woods in December of last year, Jason Genet - relevant to us Internet MMA fans as the manager of UFC heavyweight Shane Carwin (and, apparently, other prominent fighters including Efrain Escudero and Benson Henderson) - has, according to Josh Gross' Twitter, is in some serious shit with the Security and Exchanges Commission, whom today ruled against him to the tune of millions of dollars in relation to his involvement with a company called China Energy.

Of course, my initial reaction to the news of his fines was "how much does he get to keep?"  As anyone that followed the rash of corrupt accounting practices-related collapses at the turn of the decade (Enron, MCI, Global Crossing, etc) already knows, jail time for big-time embezzlers amounts to a job unless the money is returned.  Dennis Kozlowski, former CEO of Tyco International, is currently serving an eight year (maximum of 25) sentence for improperly receiving and spending over $100 million in company funds, culminating in one of the greatest paragraphs in Wikipedia:

Tyco paid $1 million (half of the $2 million bill) for the 40th birthday party of Kozlowski's second wife, Karen M. Kozlowski. The extravagant party, held on the Italian island of Sardinia, featured an ice sculpture of the Statue of David urinating Stolichnaya vodka . This birthday bash was disguised as a shareholder meeting in order to get corporate funding.

Emphasis (unnecessarily) added - suffice it to say, however, that Kozlowski, found guilty of grand larceny in criminal court, was not compelled to pay back any of the Michelangelo-ice penis money.  It makes for an interesting question - would you do a decade in the pen (state, not federal) for eight or nine digits?  Unfortunately, according to Josh's tweet (Christ, I hate how that's become a noun), Genet will not only have to pay back his alleged profit (a cool $1.7 million), but $130,000 in penalties and almost $700,000 in interest.  That's a shitty loan, but then again, he appears to have defrauded the people he borrowed it from, so I won't be shedding many tears over the finance charges.

What does this mean for Shane Carwin and his business relationship with Zuffa?  Will Carwin stick by his manager, or look elsewhere for someone to represent him when contract time comes around?  Does this news shed any light on the rumors and innuendo that surrounded Shane's finances before UFC 116?  Only time will tell - until then, everyone that profits off of bilking others, using gullibility for profit and trading fake, invisible things for money can suck eggs.  Original text of the complaint (and the chance to welcome me to WKR!) after the jump.

The original SEC complaint's most pertinent paragraph:

Among other things, the Commission's Complaint alleges that Genet played a crucial role in the illegal "pump and dump" manipulation of the common stock of China Energy. According to the Complaint, as part of the manipulation, Genet: (i) helped China Energy falsely obtain a listing on the Nasdaq NMS by helping China Energy to give away shares to hundreds of persons, and thereby created the false and misleading impression that China Energy had a bona fide and active shareholder base; (ii) engaged in unregistered distributions of securities; and (iii) entered into secret arrangements to give away China Energy stock to persons who agreed to purchase China Energy stock in the market, and thereby created the false and misleading impression of active trading and interest in China Energy. In payment for his fraudulent activities, Genet received thousands of shares of China Energy stock, which he later sold into the artificially inflated market, realizing illicit profits in excess of $1.7 million.

"If you think THAT'S bad, try having the SEC around your neck"