ATTORNEYS CHARGED BY SEC IN MICROCAP FRAUD SCHEME
November 6, 2017 |
In October 2017, the U.S. Securities and Exchange Commission (SEC) filed a pair of related lawsuits — one against Hillsboro Beach, Florida attorney James M. Schneider, and one against Nevada City, California attorney Andrew H. Wilson — alleging that the two attorneys helped facilitate a microcap fraud scheme being perpetrated by a trio of businessmen who have already been imprisoned for the fraud.
According to the SEC’s Complaints — filed in the U.S. District Court for the Southern District of Florida — businessmen Steven Sanders, Daniel McKelvey, and Alvin S. Mirman secretly controlled 22 undisclosed “blank check” companies. Such companies have no actual business operations, which makes them attractive targets for those seeking reverse mergers for use in pump-and-dump schemes
“Lawyers are critical gatekeepers when it comes to protecting the integrity of our capital markets,” said Eric I. Bustillo, Director of the SEC’s Miami Regional Office. “Schneider and Wilson failed as gatekeepers and as our complaints allege, played a crucial role in facilitating a wide-ranging microcap fraud.”
The Complaints charge Schneider with violating the registration and antifraud provisions of the federal securities laws and assert he aided and abetted Sanders, McKelvey, and Mirman’s securities laws violations. Wilson is charged with registration violations. The SEC has requested that the Court order a return of allegedly ill-gotten gains plus interest, impose civil penalties against Schneider and Wilson, bar Schneider and Wilson from the penny-stock business, and enter other relief.
Silver Miller has decades of experience helping investors duped into fraudulent or otherwise misleading investments professional malpractice contact Silver Miller
See the SEC’s Complaints:
SEC v. Schneider
SEC v. Wilson
