SEC v. Mustafa David Sayid, Norman Reynolds and Kevin Jasper (pump and dump, 2017)

Judgment entered

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In April 2017 the SEC sued New York securities lawyer Mustafa David Sayid, Texas lawyer Norman Reynolds and paralegal Kevin Jasper over the manipulation of two microcap stocks. After the court granted summary judgment on all claims in November 2019, it entered final judgments against Sayid and Reynolds on July 23, 2020. The SEC's release does not state an outcome for Jasper.

The record

What was ordered

Civil penalty

$235k

Disgorgement

$25.7k

Prejudgment interest

$7.1k

Total relief

$268k

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 SEC's April 2017 complaint alleged that Sayid used his position as a securities lawyer to take control of two microcap companies, Nouveau Holdings and Striper Energy, had them issue convertible debt to him for supposed legal fees, and sold that debt to stock manipulators who then dumped the shares. Reynolds was alleged to have written false opinion letters that let restricted Nouveau shares be sold, and Jasper to have signed documents as a nominal officer.

According to the SEC's release of July 29, 2020, the court granted summary judgment to the SEC on all claims against Sayid and Reynolds on November 25, 2019 and entered final judgments on July 23, 2020. Both are enjoined from violating Section 5 and the antifraud provisions, and both are barred from penny stock offerings and from preparing or issuing opinion letters in securities offerings; Sayid is also barred from serving as an officer or director of an SEC-registered issuer. Sayid was ordered to pay $25,000 in disgorgement, $6,899 in prejudgment interest and a $160,000 penalty; Reynolds $700, $193 and $75,000. The record shows the combined totals.

The release does not say how the claims against Jasper were resolved, and that was not checked elsewhere. Checked on 2026-10-04.

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.

• Pump and dump — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2017-04-13 Litigation release published
2. 2019-11-25 Court grants summary judgment to the SEC against Sayid and Reynolds
3. 2020-07-23 Court enters final judgments against Sayid and Reynolds

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
• SEC litigation release, final judgments (LR-24858)

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.