Home / Cases / Reverse merger schemes Reverse merger schemes enforcement actions This library records 25 enforcement actions tagged reverse merger schemes. A reverse merger scheme uses the lawful mechanism of merging a private business into a public shell to obtain a listing without scrutiny, in order to distribute stock into a market prepared for it.
Actions are listed newest first. Each row links to a case page carrying the regulator's own release and, where one was published, the complaint. For how this technique works and what statute it engages, read the reverse merger schemes technique page.
Actions 25
Total penalties $4m
Median penalty $150k
Largest $1.5m
Criminal parallel 44% Action Agency Filed Penalty Status SEC v. Brian Quinn and David Skriloff (Environmental Packaging, 2024) SEC 2024-10-18 $461k judgment SEC v. Meta Materials, Inc. ( and others (engineered short squeeze, 2024) SEC 2024-06-25 $1m settled SEC v. Darren Ofsink and Michael T. Morris (CodeSmart, 2023) SEC 2023-04-03 — judgment SEC v. James T. Patten, Peter L. Coker Sr. and Peter L. Coker Jr. (reverse merger schemes, 2022) SEC 2022-09-27 — filed SEC v. Charles Parkinson Lloyd (reverse merger schemes, 2021) SEC 2021-09-15 $40k settled SEC v. Simon Piers Thurlow, Roger Fidler and others (reverse merger schemes, 2021) SEC 2021-09-15 — filed SEC v. Peter DiChiara (reverse merger schemes, 2020) SEC 2020-09-03 $40k settled SEC v. S. Paul Kelley, et al. (reverse merger schemes, 2019) SEC 2019-12-20 — settled SEC v. Morrie Tobin et al. (undisclosed control blocks, 2019) SEC 2019-08-30 — settled SEC v. David G. Dreslin, Michael Toups and Leslie Toups (2018) SEC 2018-12-03 $345k settled SEC v. Delaney Equity Group LLC, David C. Delaney and Ian C. Kass (reverse merger schemes, 2018) SEC 2018-08-29 — settled SEC v. Richard Weed et al. (reverse merger schemes, 2018) SEC 2018-06-26 $150k judgment SEC v. Manhattan Transfer Registrar Company and John C. Ahearn (reverse merger schemes, 2018) SEC 2018-05-17 $50k settled SEC v. AF Ocean Investment Management Company (reverse merger schemes, 2018) SEC 2018-04-25 — settled SEC v. Andy Z. Fan (fake press releases, 2018) SEC 2018-04-25 $140k settled SEC v. ChinAmerica Andy Movie Entertainment Media Company (reverse merger schemes, 2018) SEC 2018-04-25 — settled SEC v. James M. Schneider and Andrew H. Wilson (blank check shells, 2017) SEC 2017-10-11 — settled SEC v. Sheldon Rose and MKJJ Consulting LLC (reverse merger schemes, 2017) SEC 2017-03-23 — settled SEC v. Olde Monmouth Stock Transfer Co., Inc. and Matthew J. Troster (reverse merger schemes, 2017) SEC 2017-02-07 $100k settled SEC v. Richard Weed, Coleman Flaherty III and Thomas Brazil (pump and dump, 2016) SEC 2016-10-04 — judgment SEC v. Richard Weed, Coleman Flaherty III and Thomas Brazil (pump and dump, 2016) SEC 2016-08-23 $150k judgment SEC v. Abraxas J. Discala, Marc E. Wexler, Matthew A. Bell, Craig L. Josephberg, and Ira Shapiro (reverse merger schemes, 2015) SEC 2015-11-04 — judgment SEC v. Benjamin Wey, et al. (reverse merger schemes, 2015) SEC 2015-09-10 — dismissed SEC v. Daniel P. McKelvey, Alvin S. Mirman, Steven Sanders and others (blank check shells, 2015) SEC 2015-04-16 — judgment SEC v. International Capital Group, LLC (reverse merger schemes, 2015) SEC 2015-01-29 $1.5m settled