Action against Defendants, an attorney, her husband, and their friend, in connection with two microcap schemes involving undisclosed “blank check” companies.  According to the SEC, Defendants attorney and husband manufactured several microcap issuers with the intent to sell them based on their status as public companies with purportedly unrestricted shares available for resale in the public markets.  The SEC further alleges that Defendants attorney and husband created the false appearance that the companies were pursuing specific business plans with independent management and shareholders by installing friends and family, including Defendant friend, as purported officers and shareholders.  The SEC alleges that Defendants sold a majority of the companies and continued to provide support to the buyer, including by submitting false legal opinion letters, and entered trades to manipulate the price of the stocks.  Finally, the SEC alleges that Defendant attorney, in a separate fraudulent scheme involving undisclosed blank check companies, provided several false legal opinion letters. 

SEC Litigation Release

Related to In re Andy Fan