Shell company
A shell company is a corporate entity with no meaningful operations or assets. Shells are lawful and have legitimate uses, but a public shell with a share listing is also the raw material for reverse-merger and promotion schemes.
Where does shell company come up?
This term is used in the following manipulation techniques, each explained in full on its own page.
Enforcement actions involving these techniques
| Action | Agency | Filed | Technique | Penalty | Status |
|---|---|---|---|---|---|
| SEC v. Morrie Tobin et al. (reverse merger schemes, 2024) | SEC | 2024-10-18 | Reverse Merger Schemes | $230k | judgment |
| SEC v. DiScala et al., (pump and dump, 2024) | SEC | 2024-09-20 | Pump And Dump , Reverse Merger Schemes | — | judgment |
| SEC v. Keith D. Beekmeyer and Andrew M. Bye (reverse merger schemes, 2024) | SEC | 2024-09-20 | Reverse Merger Schemes | — | settled |
| SEC v. Esmark Inc. and James P. Bouchard (reverse merger schemes, 2024) | SEC | 2024-09-06 | Reverse Merger Schemes | — | settled |
| SEC v. Meta Materials, Inc. ( and others (engineered short squeeze, 2024) | SEC | 2024-06-25 | Engineered Short Squeeze , Paid Stock Promotion +1 | $1m | settled |