SEC v. Lawler, et al.

Violations Charged

Section 5, Section 10(b), Rule 10b-5

Case Overview

William Lawler, an experienced securities attorney, wrote legal opinion letters assuring broker-dealers that shares of two shell companies, BRKO and IMMG, were 'freely trading' when they were in fact restricted shares under the control of the issuers' affiliates. Those letters were the paperwork that let millions of unregistered shares reach the public. Natalie Bannister furthered the BRKO scheme with straw purchases, matched trades to disguise the return of shares to their true owner, false statements to a broker, and, afterward, false statements to a government investigator.

Buyers of the purportedly unrestricted shares sold them in concert with promotional campaigns before the SEC suspended both stocks in 2016. Lawler also ran matched and wash trades in a third company's stock to create the look of an active market. One of the shells, IMMG, is the same issuer at the center of SEC v. Lin.

Joe's Role

The SEC's press release announcing the charges names Joe among the staff who conducted the investigation.

Outcome

Both defendants consented to final judgments enjoining them from future securities violations, Bannister in May 2020 and Lawler in July 2021.