Reverse merger
A reverse merger takes a private business public by merging it into an existing public shell, avoiding the disclosure and scrutiny of a registered offering. The structure is legal; its use to distribute unregistered stock is not.
Where does reverse merger 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 |