Tag Archives: shell companies

SEC Charges Three with Orchestrating a Fraudulent Public Shell Company Scheme

This week, the Securities and Exchange Commission announced fraud charges against a Florida-based CPA, a former broker, and his spouse, for their roles in a fraudulent scheme involving the creation and sale of a public shell company and false regulatory filings to facilitate the sale. According to the SEC, David Dreslin and Michael Toups created a shell company, Anglesea Enterprises,

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SEC Files Fraud Charges In MicroCap Shell Scheme

Last week, the SEC filed fraud charges against Niel Nielson for his role in orchestrating a microcap fraud at E-Waste Systems, Inc (EWSI). According to the SEC, Nielson, who was the CEO, President, and sole director of EWSI, issued frequent false and misleading statements in press releases and public filings to create the false impression that EWSI was expanding quickly across the world

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Attorney Sentenced To 3 Years For Involvement In MicroCap Pump And Dump

Last week, ex-lawyer Diane Dalmy was sentenced by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme. According to court documents and statements made in court, Dalmy, a former attorney, performed securities-related legal work on behalf of several public companies,

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OTC Markets Group Launches New Stock Promotion & Shell Risk Flags

On Wednesday, OTC Markets Group announced that a new stock promotion flag will enable investors to easily identify securities that are the subject of current promotional activity. This new flag, which is shaped like a megaphone, will appear on the promoted company’s quote page on otcmarkets.com. Stock promotion flags are part of an initiative OTC Market Group announced in November 2017

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SEC Charges Lawyers With Assisting a Microcap Fraud Scheme

On Wednesday, the Securities and Exchange Commission charged two lawyers it alleges helped facilitate a microcap fraud scheme involving undisclosed “blank check” companies secretly bound for reverse mergers. In complaints filed in the U.S. District Court for the Southern District of Florida, the SEC alleges that James M. Schneider of Hillsboro Beach, Florida, and Andrew H. Wilson of Nevada City,

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