October 11, 2017

The Securities and Exchange Commission today James M. Schneider and Andrew H. Wilson alleging they 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 Schneider of Hillsboro Beach, Florida, and Wilson of Nevada City, California, contributed to a fraud involving at least 22 undisclosed blank check companies. Such companies have no operations, making them attractive targets for those seeking reverse mergers for use in pump-and-dump schemes.  Despite claims of legitimate business plans, separate management, and independent shareholders, the 22 companies and their securities were secretly controlled by Steven Sanders, along with Daniel P. McKelvey or Alvin S. Mirman, and sold in reverse mergers.  The SEC previously filed an enforcement action against Sanders, McKelvey, and Mirman, who were separately convicted of related criminal charges and sentenced to prison. SEC

Tagged in: Market Manipulation and Trading Violations, Misrepresentations, Securities Fraud,