{
  "version": "https://jsonfeed.org/version/1.1",
  "title": "Market Manipulation: Reverse merger schemes enforcement actions",
  "home_page_url": "https://marketmanipulation.org/cases/technique/reverse-merger-schemes/",
  "feed_url": "https://marketmanipulation.org/feeds/technique/reverse-merger-schemes.json",
  "description": "The 25 most recent enforcement records tagged reverse merger schemes in the Market Manipulation library, each linked to its primary source. Tags are our classification, not the charges.",
  "language": "en-US",
  "items": [
    {
      "id": "https://marketmanipulation.org/cases/sec-morrie-tobin-et-al-reverse-merger-schemes-2024/",
      "url": "https://marketmanipulation.org/cases/sec-morrie-tobin-et-al-reverse-merger-schemes-2024/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26163",
      "title": "SEC v. Brian Quinn and David Skriloff (Environmental Packaging, 2024)",
      "summary": "In October 2024 a Massachusetts federal court entered final judgments against Brian Quinn and David Skriloff in the Environmental Packaging Technologies case, ordering each to pay $230,464 in penalties. The SEC alleged Quinn arranged a reverse merger of a shell secretly controlled by Morrie Tobin and a promotional campaign, and Skriloff misstated it in filings.",
      "date_published": "2024-10-18T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-meta-materials-inc-engineered-short-squeeze-2024/",
      "url": "https://marketmanipulation.org/cases/sec-meta-materials-inc-engineered-short-squeeze-2024/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2024/33-11292.pdf",
      "title": "SEC v. Meta Materials, Inc. ( and others (engineered short squeeze, 2024)",
      "summary": "In 2024, the Securities and Exchange Commission published a release announcing a settlement of findings that the issuer inflated its stock price around a merger dividend before an offering. This library classifies the conduct as engineered short squeeze and reverse merger schemes. The release records a civil penalty of $1,000,000.",
      "date_published": "2024-06-25T00:00:00.000Z",
      "tags": [
        "SEC",
        "engineered-short-squeeze",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-discala-et-al-reverse-merger-schemes-2023/",
      "url": "https://marketmanipulation.org/cases/sec-discala-et-al-reverse-merger-schemes-2023/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25686",
      "title": "SEC v. Darren Ofsink and Michael T. Morris (CodeSmart, 2023)",
      "summary": "In April 2023 the SEC announced final consent judgments against attorney Darren Ofsink and Michael Morris in the CodeSmart Holdings case, who the SEC said helped run its reverse merger into a shell, obscured key holders' stakes and, for Morris, matched trades to inflate the price. They accepted injunctions and penny-stock bars and disgorgement of $319,935.11 deemed satisfied by criminal restitution.",
      "date_published": "2023-04-03T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks",
        "matched-orders"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-james-t-patten-et-al-reverse-merger-schemes-2022/",
      "url": "https://marketmanipulation.org/cases/sec-james-t-patten-et-al-reverse-merger-schemes-2022/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25526",
      "title": "SEC v. James T. Patten, Peter L. Coker Sr. and Peter L. Coker Jr. (reverse merger schemes, 2022)",
      "summary": "In September 2022 the SEC sued James Patten and Peter Coker Sr. and Jr. in New Jersey, alleging they took control of the shares of Hometown International, a deli with under $40,000 of revenue, and shell E-Waste Corp., inflated prices by manipulative trading and used reverse mergers to plan to dump their shares. Criminal charges were announced in parallel. These are allegations.",
      "date_published": "2022-09-27T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "price-manipulation"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-charles-parkinson-lloyd-reverse-merger-schemes-2021/",
      "url": "https://marketmanipulation.org/cases/sec-charles-parkinson-lloyd-reverse-merger-schemes-2021/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2021/33-10980.pdf",
      "title": "SEC v. Charles Parkinson Lloyd (reverse merger schemes, 2021)",
      "summary": "In 2021, the Securities and Exchange Commission settled an action with Charles Parkinson Lloyd, alleging conduct this library classifies as reverse merger schemes and unregistered distributions. The release records a civil penalty of $40,000, disgorgement of $3,150.",
      "date_published": "2021-09-15T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "unregistered-distributions"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-simon-piers-thurlow-et-al-reverse-merger-schemes-2021/",
      "url": "https://marketmanipulation.org/cases/sec-simon-piers-thurlow-et-al-reverse-merger-schemes-2021/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25207",
      "title": "SEC v. Simon Piers Thurlow, Roger Fidler and others (reverse merger schemes, 2021)",
      "summary": "In September 2021 the SEC sued Simon Thurlow, attorney Roger Fidler and others in New York over Dolat Ventures, alleging a 2016 reverse merger with a Chinese electric-car company followed by backdated documents that let convertible-debt shares be sold unregistered for about $5.7 million. A separate settled order against an attorney who wrote opinion letters carried $3,150 in disgorgement.",
      "date_published": "2021-09-15T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-peter-dichiara-reverse-merger-schemes-2020/",
      "url": "https://marketmanipulation.org/cases/sec-peter-dichiara-reverse-merger-schemes-2020/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24884",
      "title": "SEC v. Peter DiChiara (reverse merger schemes, 2020)",
      "summary": "In September 2020 the SEC settled with attorney Peter DiChiara, charged with helping Morrie Tobin secretly control a public shell that was reverse-merged into a packaging company and transfer his shares through nominee entities, using false opinion letters. DiChiara agreed to $15,000 disgorgement, $2,167 interest, a $40,000 penalty and a five-year penny-stock bar.",
      "date_published": "2020-09-03T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-s-paul-kelley-et-al-reverse-merger-schemes-2019/",
      "url": "https://marketmanipulation.org/cases/sec-s-paul-kelley-et-al-reverse-merger-schemes-2019/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24696",
      "title": "SEC v. S. Paul Kelley, et al. (reverse merger schemes, 2019)",
      "summary": "In 2019 Robert S. Agriogianis agreed to a consent judgment in the SEC's case against S. Paul Kelley and others, with $1,204,128 disgorgement and $129,436 interest, for illegal reverse mergers and unregistered stock sales.",
      "date_published": "2019-12-20T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "unregistered-distributions"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-morrie-tobin-et-al-undisclosed-control-blocks-2019/",
      "url": "https://marketmanipulation.org/cases/sec-morrie-tobin-et-al-undisclosed-control-blocks-2019/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24583",
      "title": "SEC v. Morrie Tobin et al. (undisclosed control blocks, 2019)",
      "summary": "In November 2018 the SEC charged Morrie Tobin with secretly controlling two public companies and selling their stock through nominees, and in August 2019 it added two lawyers, Milan Patel and Matthew Ledvina. On 16 April 2021 a Massachusetts federal court entered consent final judgments against all three, with injunctions and penny stock bars. All three also pleaded guilty in a parallel criminal case.",
      "date_published": "2019-08-30T00:00:00.000Z",
      "tags": [
        "SEC",
        "undisclosed-control-blocks",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-david-g-dreslin-et-al-reverse-merger-schemes-2018/",
      "url": "https://marketmanipulation.org/cases/sec-david-g-dreslin-et-al-reverse-merger-schemes-2018/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24365",
      "title": "SEC v. David G. Dreslin, Michael Toups and Leslie Toups (2018)",
      "summary": "In December 2018 the SEC sued Florida CPA David Dreslin, former broker Michael Toups and his wife Leslie Toups, alleging they built a shell company, Anglesea Enterprises, on false filings and nominee officers in order to sell it. On 3 March 2020 a Florida federal court entered final consent judgments against all three, ordering $345,000 in penalties combined, plus $183,438 in disgorgement and $30,197 in interest against Dreslin. The defendants did not admit or deny the allegations.",
      "date_published": "2018-12-03T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-delaney-equity-group-llc-delaney-reverse-merger-schemes-2018/",
      "url": "https://marketmanipulation.org/cases/sec-delaney-equity-group-llc-delaney-reverse-merger-schemes-2018/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2018/33-10541.pdf",
      "title": "SEC v. Delaney Equity Group LLC, David C. Delaney and Ian C. Kass (reverse merger schemes, 2018)",
      "summary": "In August 2018 the SEC settled with Ian Kass, a former Delaney Equity Group representative, in a proceeding that also named the firm and its CEO David Delaney, finding he helped sell blank-check shells that undisclosed control persons had manufactured. Kass is barred from the securities industry and owes $9,269.85 disgorgement and $1,509.80 interest.",
      "date_published": "2018-08-29T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "shell-factories",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-richard-weed-et-al-reverse-merger-schemes-2018/",
      "url": "https://marketmanipulation.org/cases/sec-richard-weed-et-al-reverse-merger-schemes-2018/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-24175",
      "title": "SEC v. Richard Weed et al. (reverse merger schemes, 2018)",
      "summary": "In June 2018 a Massachusetts federal court entered final judgment against attorney Richard Weed in the SEC's CitySide Tickets case, with a $150,000 penalty and officer-director and penny-stock bars, after his criminal conviction and four-year prison sentence.",
      "date_published": "2018-06-26T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-manhattan-transfer-registrar-company-and-john-c-ahearn-reverse-merger-scheme/",
      "url": "https://marketmanipulation.org/cases/sec-manhattan-transfer-registrar-company-and-john-c-ahearn-reverse-merger-scheme/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2018/33-10497.pdf",
      "title": "SEC v. Manhattan Transfer Registrar Company and John C. Ahearn (reverse merger schemes, 2018)",
      "summary": "In May 2018 the SEC settled with transfer agent Manhattan Transfer Registrar and its principal John Ahearn for removing restrictive legends and moving shares of two blank-check shells that undisclosed control persons then sold publicly without registration. The firm owes $2,132.57 disgorgement, $361.96 interest and a $50,000 penalty; Ahearn is barred with a five-year right to reapply.",
      "date_published": "2018-05-17T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-af-ocean-investment-management-company-reverse-merger-schemes-2018/",
      "url": "https://marketmanipulation.org/cases/sec-af-ocean-investment-management-company-reverse-merger-schemes-2018/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2018/33-10488.pdf",
      "title": "SEC v. AF Ocean Investment Management Company (reverse merger schemes, 2018)",
      "summary": "In April 2018 the SEC settled administrative proceedings against AF Ocean Investment Management Company, finding it was an undisclosed blank-check shell whose principal, Andy Fan, held nearly all its shares for a later reverse merger with a Chinese company while its reports hid his ownership. Its securities were revoked.",
      "date_published": "2018-04-25T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-andy-z-fan-fake-press-releases-2018/",
      "url": "https://marketmanipulation.org/cases/sec-andy-z-fan-fake-press-releases-2018/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2018/33-10487.pdf",
      "title": "SEC v. Andy Z. Fan (fake press releases, 2018)",
      "summary": "In 2018, the Securities and Exchange Commission settled an action with Andy Z. Fan, alleging conduct this library classifies as fake press releases, matched orders and reverse merger schemes. The release records a civil penalty of $140,000.",
      "date_published": "2018-04-25T00:00:00.000Z",
      "tags": [
        "SEC",
        "fake-press-releases",
        "matched-orders",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-chinamerica-andy-movie-entertainment-media-company-reverse-merger-schemes-20/",
      "url": "https://marketmanipulation.org/cases/sec-chinamerica-andy-movie-entertainment-media-company-reverse-merger-schemes-20/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2018/33-10489.pdf",
      "title": "SEC v. ChinAmerica Andy Movie Entertainment Media Company (reverse merger schemes, 2018)",
      "summary": "In April 2018 the SEC settled administrative proceedings against ChinAmerica Andy Movie Entertainment Media Company, finding it was an undisclosed blank-check shell whose principal, Andy Fan, held nearly all its shares for a later reverse merger with a Chinese company while its reports hid his ownership. Its securities were revoked.",
      "date_published": "2018-04-25T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-james-m-schneider-reverse-merger-schemes-2017/",
      "url": "https://marketmanipulation.org/cases/sec-james-m-schneider-reverse-merger-schemes-2017/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23965",
      "title": "SEC v. James M. Schneider and Andrew H. Wilson (blank check shells, 2017)",
      "summary": "In October 2017 the SEC charged lawyers James Schneider and Andrew Wilson in Florida with helping a scheme that sold at least 22 undisclosed blank check companies bound for reverse mergers by writing false opinion letters. Both consented to final judgments, Schneider on April 5, 2019 and Wilson on May 6, 2020, with small disgorgement amounts deemed satisfied by criminal orders.",
      "date_published": "2017-10-11T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "unregistered-distributions"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-rose-reverse-merger-schemes-2017/",
      "url": "https://marketmanipulation.org/cases/sec-rose-reverse-merger-schemes-2017/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2017/33-10325.pdf",
      "title": "SEC v. Sheldon Rose and MKJJ Consulting LLC (reverse merger schemes, 2017)",
      "summary": "In March 2017 the SEC ordered Sheldon Rose and his company MKJJ Consulting to pay $2,734,497 in disgorgement and $239,419.18 in interest for secretly controlling 17 blank-check shells and selling 15 of them as public vehicles, using nominee sole officers and false filings.",
      "date_published": "2017-03-23T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-olde-monmouth-stock-transfer-co-inc-and-matthew-j-troster-reverse-merger-sch/",
      "url": "https://marketmanipulation.org/cases/sec-olde-monmouth-stock-transfer-co-inc-and-matthew-j-troster-reverse-merger-sch/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2017/33-10303.pdf",
      "title": "SEC v. Olde Monmouth Stock Transfer Co., Inc. and Matthew J. Troster (reverse merger schemes, 2017)",
      "summary": "In 2017 the SEC settled an administrative order against transfer agent Olde Monmouth Stock Transfer Co., Inc. and Matthew J. Troster for transfers that violated Section 5, with $22,140 disgorgement, $4,043 interest and $100,000 in penalties.",
      "date_published": "2017-02-07T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "unregistered-distributions"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-richard-weed-et-al-pump-and-dump-2016-lr-23671/",
      "url": "https://marketmanipulation.org/cases/sec-richard-weed-et-al-pump-and-dump-2016-lr-23671/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23671",
      "title": "SEC v. Richard Weed, Coleman Flaherty III and Thomas Brazil (pump and dump, 2016)",
      "summary": "In October 2016 the Securities and Exchange Commission announced consent judgments in the District of Massachusetts against Coleman Flaherty III and Thomas Brazil over the CitySide Tickets scheme, with injunctions, penny stock bars and disgorgement of $1,350,734 and $1,519,213 that are deemed satisfied by criminal forfeiture orders. The case against attorney Richard Weed, who had been sentenced to four years in prison, remained pending.",
      "date_published": "2016-10-04T00:00:00.000Z",
      "tags": [
        "SEC",
        "pump-and-dump",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-richard-weed-et-al-pump-and-dump-2016/",
      "url": "https://marketmanipulation.org/cases/sec-richard-weed-et-al-pump-and-dump-2016/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23624",
      "title": "SEC v. Richard Weed, Coleman Flaherty III and Thomas Brazil (pump and dump, 2016)",
      "summary": "The SEC sued attorney Richard Weed and promoters Coleman Flaherty and Thomas Brazil in 2014 over the CitySide Tickets stock scheme. Flaherty and Brazil consented to judgments in October 2016, and after summary judgment against Weed the court entered a final judgment on June 22, 2018 with a $150,000 penalty, ending the case.",
      "date_published": "2016-08-23T00:00:00.000Z",
      "tags": [
        "SEC",
        "pump-and-dump",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-abraxas-j-discala-marc-e-wexler-matthew-a-bell-craig-l-josephberg-reverse-me/",
      "url": "https://marketmanipulation.org/cases/sec-abraxas-j-discala-marc-e-wexler-matthew-a-bell-craig-l-josephberg-reverse-me/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23400",
      "title": "SEC v. Abraxas J. Discala, Marc E. Wexler, Matthew A. Bell, Craig L. Josephberg, and Ira Shapiro (reverse merger schemes, 2015)",
      "summary": "In 2015, the Securities and Exchange Commission obtained a judgment against Abraxas J. Discala, Marc E. Wexler, Matthew A. Bell, Craig L. Josephberg, and Ira Shapiro, alleging conduct this library classifies as reverse merger schemes and unregistered distributions. The release does not state a monetary figure that we were able to extract. A parallel criminal matter is referenced in the release.",
      "date_published": "2015-11-04T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "unregistered-distributions"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-benjamin-wey-et-al-reverse-merger-schemes-2015/",
      "url": "https://marketmanipulation.org/cases/sec-benjamin-wey-et-al-reverse-merger-schemes-2015/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23342",
      "title": "SEC v. Benjamin Wey, et al. (reverse merger schemes, 2015)",
      "summary": "The SEC's September 2015 reverse-merger case against Benjamin Wey and New York Global Group was voluntarily dismissed as to Wey, his firm, Michaela Wey, Robert Newman and William Uchimoto on 1 September 2017. The SEC says it had relied on evidence later suppressed in the parallel criminal case. A claim against Seref Dogan Erbek was still continuing in April 2018.",
      "date_published": "2015-09-10T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "undisclosed-control-blocks"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-daniel-p-mckelvey-et-al-reverse-merger-schemes-2015/",
      "url": "https://marketmanipulation.org/cases/sec-daniel-p-mckelvey-et-al-reverse-merger-schemes-2015/",
      "external_url": "https://www.sec.gov/enforcement-litigation/litigation-releases/lr-23243",
      "title": "SEC v. Daniel P. McKelvey, Alvin S. Mirman, Steven Sanders and others (blank check shells, 2015)",
      "summary": "In April 2015 the SEC charged ten individuals over a scheme that created nearly two dozen undisclosed blank check companies and sold most of them for about $6 million for use in reverse mergers. In the Southern District of Florida, final judgments against the six court defendants were in place by February 23, 2018, with some money claims dropped after parallel criminal forfeiture and sentencing. The four figureheads who settled in administrative orders were not checked.",
      "date_published": "2015-04-16T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes"
      ]
    },
    {
      "id": "https://marketmanipulation.org/cases/sec-international-capital-group-llc-reverse-merger-schemes-2015/",
      "url": "https://marketmanipulation.org/cases/sec-international-capital-group-llc-reverse-merger-schemes-2015/",
      "external_url": "https://www.sec.gov/files/litigation/admin/2015/33-9717.pdf",
      "title": "SEC v. International Capital Group, LLC (reverse merger schemes, 2015)",
      "summary": "In 2015, the Securities and Exchange Commission settled an action with International Capital Group, LLC, alleging conduct this library classifies as reverse merger schemes and unregistered distributions. The release records a civil penalty of $1.5 million, disgorgement of $1.5 million, prejudgment interest of $203,459.",
      "date_published": "2015-01-29T00:00:00.000Z",
      "tags": [
        "SEC",
        "reverse-merger-schemes",
        "unregistered-distributions"
      ]
    }
  ]
}