SEC v. Lisser
DOCKET · 1:20-cv-05798 · FILED · DEC 1, 2020
Violations Charged
Section 17(a), Section 10(b), Rule 10b-5, adviser provisions
Case Overview
Mark Lisser ran boiler rooms on Long Island and in Boca Raton, where more than twenty salespeople cold-called investors from scripts, 'You can buy this one with your eyes closed!', selling interests in funds that supposedly held stock in well-known private companies expected to go public. Investors were told there were no markups and no commissions, and that the firm profited only when they did.
In truth, the shares were marked up 14% to 62%, the salespeople earned upfront commissions, and Lisser, who worked under the name 'Mark Allen' to hide a record of customer complaints, kept roughly $900,000 of the $2.1 million raised, including investor money spent on his credit card bills. The funds also never bought enough shares to cover everything they had sold.
Joe's Role
The SEC's press release announcing the charges names Joe among the staff who conducted the investigation.
Outcome
A parallel criminal case was brought by the U.S. Attorney's Office for the Eastern District of New York. In the SEC's action, Lisser consented to a permanent injunction and to pay $890,092.90 in disgorgement plus prejudgment interest, offset by amounts ordered in the criminal case.