William A. Justice, Keith A. Rosenbaum, Brian D. Shibley, and Randell R. Torno – SEC.gov “William A. Justice, Keith A. Rosenbaum, Brian D. Shibley, and Randell R. Torno investigated by SEC”

The Securities and Exchange Commission (SEC) has recently made headlines by bringing charges against several individuals involved in a penny-stock fraud scheme. This legal action, taken on July 1, 2025, has targeted public company CEOs and a disbarred attorney for their roles in perpetrating fraudulent activities.

The SEC has accused these individuals of engaging in a scheme that involved the fraudulent issuance of convertible notes and the subsequent sale of billions of shares of penny stocks. This illegal activity is alleged to have allowed the perpetrators to reap significant profits while also deceiving investors and manipulating the stock market.

According to the SEC’s complaint, the CEOs of the public companies involved in the scheme, along with the disbarred attorney, worked together to artificially inflate the value of the penny stocks through a series of false and misleading statements. These actions were designed to entice investors to purchase the stocks at artificially inflated prices, ultimately allowing the perpetrators to profit at the expense of unsuspecting investors.

The SEC’s investigation into this penny-stock fraud scheme has revealed a complex web of deceit and manipulation that was orchestrated by the accused individuals. The alleged actions of the CEOs and disbarred attorney not only violated securities laws and regulations but also undermined the integrity of the stock market and harmed investors who were misled into purchasing the fraudulent stocks.

In response to these charges, the SEC is seeking a variety of remedies and penalties against the individuals involved in the penny-stock fraud scheme. This includes seeking injunctions to prevent further fraudulent activities, disgorgement of ill-gotten gains, civil monetary penalties, and other relief deemed appropriate by the court.

The SEC’s enforcement actions in cases such as this serve as a powerful deterrent to others who may be considering engaging in fraudulent activities in the securities market. By holding individuals accountable for their actions and seeking appropriate legal remedies, the SEC is working to protect investors and maintain the integrity of the financial markets.

Overall, the SEC’s charges against the public company CEOs and disbarred attorney in the penny-stock fraud scheme underscore the organization’s commitment to upholding fairness, transparency, and accountability in the securities industry. Through its enforcement efforts, the SEC is sending a clear message that fraudulent activities will not be tolerated and that those who engage in such behavior will face consequences for their actions.