Reverse merger schemes enforcement actions

This library records 25 enforcement actions tagged reverse merger schemes. A reverse merger scheme uses the lawful mechanism of merging a private business into a public shell to obtain a listing without scrutiny, in order to distribute stock into a market prepared for it.

Actions are listed newest first. Each row links to a case page carrying the regulator's own release and, where one was published, the complaint. For how this technique works and what statute it engages, read the reverse merger schemes technique page.

Actions: 25
Total penalties: $4m
Median penalty: $150k
Largest: $1.5m
Criminal parallel: 44%

Action	Agency	Filed	Penalty	Status
SEC v. Brian Quinn and David Skriloff (Environmental Packaging, 2024)	SEC	2024-10-18	$461k	judgment
SEC v. Meta Materials, Inc. ( and others (engineered short squeeze, 2024)	SEC	2024-06-25	$1m	settled
SEC v. Darren Ofsink and Michael T. Morris (CodeSmart, 2023)	SEC	2023-04-03	—	judgment
SEC v. James T. Patten, Peter L. Coker Sr. and Peter L. Coker Jr. (reverse merger schemes, 2022)	SEC	2022-09-27	—	filed
SEC v. Charles Parkinson Lloyd (reverse merger schemes, 2021)	SEC	2021-09-15	$40k	settled
SEC v. Simon Piers Thurlow, Roger Fidler and others (reverse merger schemes, 2021)	SEC	2021-09-15	—	filed
SEC v. Peter DiChiara (reverse merger schemes, 2020)	SEC	2020-09-03	$40k	settled
SEC v. S. Paul Kelley, et al. (reverse merger schemes, 2019)	SEC	2019-12-20	—	settled
SEC v. Morrie Tobin et al. (undisclosed control blocks, 2019)	SEC	2019-08-30	—	settled
SEC v. David G. Dreslin, Michael Toups and Leslie Toups (2018)	SEC	2018-12-03	$345k	settled
SEC v. Delaney Equity Group LLC, David C. Delaney and Ian C. Kass (reverse merger schemes, 2018)	SEC	2018-08-29	—	settled
SEC v. Richard Weed et al. (reverse merger schemes, 2018)	SEC	2018-06-26	$150k	judgment
SEC v. Manhattan Transfer Registrar Company and John C. Ahearn (reverse merger schemes, 2018)	SEC	2018-05-17	$50k	settled
SEC v. AF Ocean Investment Management Company (reverse merger schemes, 2018)	SEC	2018-04-25	—	settled
SEC v. Andy Z. Fan (fake press releases, 2018)	SEC	2018-04-25	$140k	settled
SEC v. ChinAmerica Andy Movie Entertainment Media Company (reverse merger schemes, 2018)	SEC	2018-04-25	—	settled
SEC v. James M. Schneider and Andrew H. Wilson (blank check shells, 2017)	SEC	2017-10-11	—	settled
SEC v. Sheldon Rose and MKJJ Consulting LLC (reverse merger schemes, 2017)	SEC	2017-03-23	—	settled
SEC v. Olde Monmouth Stock Transfer Co., Inc. and Matthew J. Troster (reverse merger schemes, 2017)	SEC	2017-02-07	$100k	settled
SEC v. Richard Weed, Coleman Flaherty III and Thomas Brazil (pump and dump, 2016)	SEC	2016-10-04	—	judgment
SEC v. Richard Weed, Coleman Flaherty III and Thomas Brazil (pump and dump, 2016)	SEC	2016-08-23	$150k	judgment
SEC v. Abraxas J. Discala, Marc E. Wexler, Matthew A. Bell, Craig L. Josephberg, and Ira Shapiro (reverse merger schemes, 2015)	SEC	2015-11-04	—	judgment
SEC v. Benjamin Wey, et al. (reverse merger schemes, 2015)	SEC	2015-09-10	—	dismissed
SEC v. Daniel P. McKelvey, Alvin S. Mirman, Steven Sanders and others (blank check shells, 2015)	SEC	2015-04-16	—	judgment
SEC v. International Capital Group, LLC (reverse merger schemes, 2015)	SEC	2015-01-29	$1.5m	settled