Action against Respondents, a registered transfer agent and its former principal, for their alleged role in enabling public trading of shares of undisclosed “blank check” companies.  According to the SEC, undisclosed control persons, who manufactured undisclosed blank check companies, hired Respondents to facilitate the sale of purportedly unrestricted shares of the blank check companies by reverse merger.  The SEC alleges that despite red flags that the shares were illegal distributions, Respondents removed restrictive legends and completed stock transfer requests that led to the unlawful public sale of the securities of two blank check companies.  Respondent transfer agent has agreed to pay a civil penalty of $50,000, disgorgement of $2,132, and prejudgment interest of $361 and to retain an independent consultant to conduct a compliance review.  Respondent principal agreed to a five-year bar with the right to reapply.

SEC Order

SEC Press Release