SEC v. Perlstein, et al.
DOCKET · 1:18-cv-01026 · FILED · FEB 16, 2018
Violations Charged
Section 5, plus administrative bars and suspensions
Case Overview
Sharone Perlstein, Aric Swartz, and Hadas Yaron ran a shell factory from Israel. Between 2010 and 2014 they created at least fifteen U.S. public companies with no real business: names picked from streets and pet dogs, fabricated business plans, nominee officers whose signatures were cut and pasted into corporate documents, and audits performed by a firm that never spoke to the companies' supposed management.
Each shell ran a sham IPO to straw shareholders, obtained a ticker symbol and electronic trading eligibility, and was then sold as a clean-looking public vehicle to whoever needed one, for total profits over $1.8 million. The registration statements filed with the SEC concealed all of it.
Joe's Role
The SEC's press release announcing the charges names Joe among the staff who conducted the investigation.
Outcome
The court entered default judgments against certain defendants, and the SEC imposed bars and suspensions on the gatekeepers. According to the complaint, the group profited by more than $1.8 million from selling the shells.
ISSUERS · Aquino Milling, Duane Street Corp., Marathon Bar Corp. & 12 other shells