SEC v. Jillian Sidoti (undisclosed control blocks, 2022)

Judgment entered

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In May 2022 a federal court entered a consent judgment against California attorney Jillian Sidoti, whom the SEC said hid that Blake Insomnia Therapeutics' shares were going to a single control group through nominee shareholders. She pays a $22,000 penalty, $14,169 disgorgement and $4,665 interest and accepted a five-year penny-stock bar.

The record

What was ordered

Civil penalty

$22k

Disgorgement

$14.2k

Prejudgment interest

$4.7k

Total relief

$40.8k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced on May 17, 2022 (litigation release 25394) that on May 13, 2022 the Central District of California entered final judgment on consent against Sidoti in the case filed on October 19, 2020.

The SEC alleged that as Blake's attorney she drafted documents containing materially false information about its operations and control, sold nearly all of its stock to nominee shareholders to hide that the buyers were a single control group, and wrote opinion letters falsely describing control so the transfer agent would lift restrictive legends and the Depository Trust Corporation would accept the shares, letting the group sell over five million shares to the public.

Without admitting or denying, she consented to an injunction under Sections 5(a), 5(c), 17(a)(1) and (3), Section 10(b) and Rule 10b-5, a five-year penny-stock bar, a five-year conduct-based injunction limiting opinion letters, a $22,000 civil penalty, $14,169 disgorgement and $4,665 prejudgment interest. This library tags the matter as undisclosed control blocks.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Undisclosed control blocks — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2022-05-17 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.