As if the reverse merger world needs another black eye, a previously well known attorney in the space agreed on Tuesday to stop practicing law before the Securities and Exchange Commission for five years. This results from an alleged improper opinion letter facilitating an alleged illegal public offering of millions of shares of a company. I have always had a policy of not naming names in my blogs, and will continue that now. In an article, the attorney’s lawyer said that the accused has no more money to fight and their business has gone away since the SEC brought the case and therefore had to settle. Apparently the opinion that was issued talked about notes and noteholders of the company that didn’t exist.
This lawyer also became well known for trying to claim that the SEC should allow shares of a shell created under Form 10 to be able to trade, but the SEC disagreed and did not permit the practice.
When a case like this is settled, it’s hard to know what really happened. In most disputes of this kind settlement makes sense, but the power of prosecutors and the government is significant to force accused bad actors to deplete all their funds for legal defense. We hope that the well-intentioned enforcement folks stick to their mission of ensuring justice, not just notches in a belt.
Read additional articles at the David Feldman Blog.
For more information about LexisNexis products and solutions connect with us through our corporate site.