SEC v. JAMES M. SCHNEIDER, No. 9:17-cv-81142, Southern District of Florida (Oct. 11, 2017) — Complaint
raw: ("Schneider") from violating the antifraud and registration provisions of the federal securities
("Schneider") from violating the antifraud and registration provisions of the federal securities, No. 9:17-cv-81142 (Oct. 11, 2017)
James M. Schneider, a securities attorney, aided a fraudulent scheme from 2008 to 2013 by serving as primary counsel to ringleaders who created and sold 18 undisclosed 'blank check' companies via deceptive reverse mergers, raising $6 million in violation of federal antifraud and registration laws, prompting the SEC to seek injunctive relief.
The SEC alleges that James M. Schneider, a seasoned securities attorney, acted as the primary legal counsel to Daniel McKelvey, Alvin Mirman, and Steven Sanders in a scheme that manufactured at least 20 undisclosed 'blank check' companies under Rule 419 between March 2008 and November 2013. Schneider facilitated the illegal sale of 18 of these companies for approximately $6 million by structuring deceptive public offerings with unrestricted securities and concealing their true control and nature. The complaint charges Schneider with violating federal antifraud and registration provisions of the securities laws and seeks injunctive relief to prevent further violations.
James M. Schneider, a securities attorney, is accused by the SEC of playing a central role in a fraudulent scheme from March 2008 to November 2013 involving the creation and sale of at least 20 undisclosed 'blank check' companies as defined under Rule 419 of the Securities Act. Acting as the primary legal counsel to the scheme’s ringleaders—Daniel McKelvey, Alvin Mirman, and Steven Sanders—Schneider provided professional services that enabled the fabrication of deceptive public floats of unrestricted securities, masking the true ownership and control of these shell entities. Through his legal expertise, he helped legitimize the illegal transactions, resulting in the sale of 18 of these companies for approximately $6 million. The SEC alleges Schneider knowingly violated the antifraud and registration provisions of federal securities laws by concealing material information and structuring transactions to evade regulatory scrutiny. Although the complaint does not specify criminal charges or monetary penalties, it seeks injunctive relief to halt Schneider’s ongoing unlawful conduct and prevent future violations. Schneider’s involvement as a licensed attorney lending credibility to the scheme underscores the severity of the alleged misconduct. The case highlights the SEC’s focus on holding legal professionals accountable for enabling large-scale securities fraud.
Extracted insights
- $6.00M $6 million $1M–$10M
- person James M. Schneider ×2
- person Alvin Mirman
- person control persons
- person Daniel McKelvey
- agency Securities and Exchange Commission
- person steven sanders
- organization United States District Court Southern District Of Florida
- Securities and Exchange Commission brings action to enjoin James M. Schneider
- James M. Schneider participated in scheme with Daniel McKelvey, Alvin Mirman, Steven Sanders
- Control Persons sold 18 Blank Check Companies for approximately $6 million
- James M. Schneider acted as primary attorney for Control Persons
UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO.
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
JAMES M. SCHNEIDER,
Defendant.
COMPLAINT
Plaintiff Securities and Exchange Commission alleges as follows:
I. INTRODUCTION
1. The Commission brings this action to enjoin Defendant James M. Schneider
("Schneider") from violating the antifraud and registration provisions of the federal securities
laws. From no later than March 2008 through November 2013, Schneider participated in a
scheme with Daniel McKelvey ("McKelvey"), Alvin Mirman ("Mirman"), and Steven Sanders
("Sanders") (collectively, the "Control Persons") in which at least 20 undisclosed "blank check"
companies (collectively, the "Blank Check Companies") as defined in Rule 419 under the
Securities Act of 1933 ("Securities Act"), 17 C.F.R. § 230.419, were manufactured for sale by
reverse merger with a deceptive public float of purportedly unrestricted securities. With the
participation and substantial assistance of Schneider, the Control Persons sold 18 of the Blank
Check Companies for approximately $6 million.
2. Schneider, a seasoned securities law attorney, acted as the Control Persons'
primary attorney in furtherance of the scheme. Schneider provided professional services fromUNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLORIDA
CASE NO.
SECURITIES AND EXCHANGE COMMISSION,
Plaintiff,
V.
JAMES M. SCHNEIDER,
Defendant.
COMPLAINT
Plaintiff Securities and Exchange Commission alleges as follows:
I. INTRODUCTION
1. The Commission brings this action to enjoin Defendant James M. Schneider
("Schneider") from violating the antifraud and registration provisions of the federal securities
laws. From no later than March 2008 through November 2013, Schneider participated in a
scheme with Daniel McKelvey ("McKelvey"), Alvin Mirman ("Mirman"), and Steven Sanders
("Sanders") (collectively, the "Control Persons") in which at least 20 undisclosed "blank check"
companies (collectively, the "Blank Check Companies") as defined in Rule 419 under the
Securities Act of 1933 ("Securities Act"), 17 C.F.R. § 230.419, were manufactured for sale by
reverse merger with a deceptive public float of purportedly unrestricted securities. With the
participation and substantial assistance of Schneider, the Control Persons sold 18 of the Blank
Check Companies for approximately $6 million.
2. Schneider, a seasoned securities law attorney, acted as the Control Persons'
primary attorney in furtherance of the scheme. Schneider provided professional services from
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Case 9:17-cv-81142-XXXX Document 1 Entered on FLSD Docket 10/11/2017 Page 40 of 41 V. Penny Stock Bar Issue an Order, pursuant to Section 20(g) of the Securities Act, 15 U.S.C. § 77t(g), and Section 21(d)(6) of the Exchange Act, 15 U.S.C. § 78u(d)(6), barring Schneider from participating in any future offering of a penny stock. VI. Further Relief Grant such other and further relief as may be necessary and appropriate. VII. Retention of Jurisdiction Further, the Commission respectfully requests that the Court retain jurisdiction over this action and over Schneider in order to implement and carry out the terms of all orders and decrees that may hereby be entered, or to entertain any suitable application or motion by the Commission for additional relief within the jurisdiction of this Court. Dated: October 11, 2017 Respectfully submitted, By: Christine Nestor Senior Trial Counsel Florida Bar No. 597211 Direct Dial: (305) 982-6367 E-mail: [email protected] Lead Attorney Attorney To Be Noticed ATTORNEY FOR PLAINTIFF SECURITIES AND EXCHANGE COMMISSION 801 Brickell Avenue, Suite 1800 Miami, Florida 33131 Telephone: (305) 982-6300 Facsimile: (305) 536-4154