SEC v. CRAIG V. SIZER, No. 9:18-cv-80585, Southern District of Florida (May 9, 2018)

   
 
 
 UNITED STATES OF AMERICA 
 Before the 
 SECURITIES AND EXCHANGE COMMISSION 
 
SECURITIES EXCHANGE ACT OF 1934 
Release No. 79121 / October 19, 2016 
 
ADMINISTRATIVE PROCEEDING 
File No. 3-17635 
 
In the Matter of 
 
CRAIG V. SIZER  
 
Respondent. 
 
ORDER INSTITUTING  
ADMINISTRATIVE PROCEEDINGS 
PURSUANT TO SECTION 15(b) OF THE 
SECURITIES EXCHANGE ACT OF 1934, 
MAKING FINDINGS, AND IMPOSING 
REMEDIAL SANCTIONS 
 
 
I. 
 
 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 
public interest that public administrative proceedings be, and hereby are, instituted pursuant to 
Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Craig V. Sizer 
(“Respondent”).   
 
II. 
 
 In anticipation of the institution of these proceedings, Respondent has submitted an Offer 
of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 
purpose of these proceedings and any other proceedings brought by or on behalf of the 
Commission, or to which the Commission is a party, Respondent admits the Commission’s 
jurisdiction over him and the subject matter of these proceedings, and the findings contained in 
Section III.2 below, and consents to the entry of this Order Instituting Administrative Proceedings 
Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing 
Remedial Sanctions (“Order”), as set forth below. 
   
III. 
 
 On the basis of this Order and Respondent’s Offer, the Commission finds that: 
 
 1. Sizer, age 48, a resident of Aventura, Florida, was the co-founder and former Chief 
Executive Officer of Sanomedics, Inc., and the former president and chairman of Fun Cool Free, 
Inc.  Sizer was a registered representative formerly associated with the broker-dealers Investors 

 2 
Associates, Inc. (1992-1993) and American Investment Services, Inc. (1995-1996).  Sizer is not, 
and was not at the time of the conduct described herein, registered with the Commission as a broker 
or dealer.  Sizer was an associated person of Michael Mesa (“Mesa”), who acted as an unregistered 
broker operating a boiler room.  Among other things, Sizer hired Mesa and provided talking points 
to Mesa that were used by the boiler room’s sales agents to solicit investors which included, among 
other things, that investor proceeds would not be used to pay sales commissions.  Further, Sizer 
received Sanomedics investor funds and paid Mesa a substantial portion of those proceeds, knowing 
Mesa would use some of those funds to pay sales commissions.    
 
 2. On October 13, 2016, a final judgment was entered by consent against 
Respondent, permanently enjoining him from future violations of Section 17(a) of the Securities 
Act of 1933 (“Securities Act”), Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 
thereunder, in the civil action entitled Securities and Exchange Commission v. Craig V. Sizer, et 
al., Civil Action Number 16-cv-24106-JAL, in the United States District Court for the Southern 
District of Florida.  
 
 3. The Commission’s complaint alleged that Respondent offered and sold Sanomedics 
and Fun Cool Free securities to individual investors while aiding and abetting Mesa, who acted as 
an unregistered broker.  The Commission further alleged that Respondent made misrepresentations 
and omissions to investors that investor funds would be used by Sanomedics and Fun Cool Free to 
develop the companies’ businesses, and that no commissions or fees would be charged to investors.  
Respondent also participated in a fraudulent scheme with Mesa by misappropriating millions of 
dollars of investor proceeds, which were used for their personal expenses and for paying 
undisclosed commissions to sales agents.    
 
IV. 
 
 In view of the foregoing, the Commission deems it appropriate and in the public interest to 
impose the sanctions agreed to in Respondent’s Offer. 
 
 Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act, 
that Respondent be, and hereby is barred from association with any broker, dealer, investment 
adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized 
statistical rating organization.  
 
 
 
 
 
 
 
 
 
 
 

 3 
 
 
Any reapplication for association by the Respondent will be subject to the applicable laws 
and regulations governing the reentry process, and reentry may be conditioned upon a number of 
factors, including, but not limited to, the satisfaction of any or all of the following:  (a) any 
disgorgement ordered against the Respondent, whether or not the Commission has fully or partially 
waived payment of such disgorgement; (b) any arbitration award related to the conduct that served 
as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a 
customer, whether or not related to the conduct that served as the basis for the Commission order; 
and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct 
that served as the basis for the Commission order. 
 
 By the Commission. 
 
 
 
 
       Brent J. Fields 
       Secretary 

UNITED STATES OF AMERICA 

 Before the 

 SECURITIES AND EXCHANGE COMMISSION 

 

SECURITIES EXCHANGE ACT OF 1934 

Release No. 79121 / October 19, 2016 

 

ADMINISTRATIVE PROCEEDING 

File No. 3-17635 

 

In the Matter of 

 

CRAIG V. SIZER  

 

Respondent. 

 

ORDER INSTITUTING  

ADMINISTRATIVE PROCEEDINGS 

PURSUANT TO SECTION 15(b) OF THE 

SECURITIES EXCHANGE ACT OF 1934, 

MAKING FINDINGS, AND IMPOSING 

REMEDIAL SANCTIONS 

 

 

I. 
 

 The Securities and Exchange Commission (“Commission”) deems it appropriate and in the 

public interest that public administrative proceedings be, and hereby are, instituted pursuant to 

Section 15(b) of the Securities Exchange Act of 1934 (“Exchange Act”) against Craig V. Sizer 

(“Respondent”).   

 

II. 
 

 In anticipation of the institution of these proceedings, Respondent has submitted an Offer 

of Settlement (the “Offer”) which the Commission has determined to accept.  Solely for the 

purpose of these proceedings and any other proceedings brought by or on behalf of the 

Commission, or to which the Commission is a party, Respondent admits the Commission’s 

jurisdiction over him and the subject matter of these proceedings, and the findings contained in 

Section III.2 below, and consents to the entry of this Order Instituting Administrative Proceedings 

Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings, and Imposing 

Remedial Sanctions (“Order”), as set forth below. 

   

III. 
 

 On the basis of this Order and Respondent’s Offer, the Commission finds that: 

 

 1. Sizer, age 48, a resident of Aventura, Florida, was the co-founder and former Chief 

Executive Officer of Sanomedics, Inc., and the former president and chairman of Fun Cool Free, 

Inc.  Sizer was a registered representative formerly associated with the broker-dealers Investors 



 2 

Associates, Inc. (1992-1993) and American Investment Services, Inc. (1995-1996).  Sizer is not, 

and was not at the time of the conduct described herein, registered with the Commission as a broker 

or dealer.  Sizer was an associated person of Michael Mesa (“Mesa”), who acted as an unregistered 

broker operating a boiler room.  Among other things, Sizer hired Mesa and provided talking points 

to Mesa that were used by the boiler room’s sales agents to solicit investors which included, among 

other things, that investor proceeds would not be used to pay sales commissions.  Further, Sizer 

received Sanomedics investor funds and paid Mesa a substantial portion of those proceeds, knowing 

Mesa would use some of those funds to pay sales commissions.    

 

 2. On October 13, 2016, a final judgment was entered by consent against 

Respondent, permanently enjoining him from future violations of Section 17(a) of the Securities 

Act of 1933 (“Securities Act”), Sections 10(b) and 15(a) of the Exchange Act and Rule 10b-5 

thereunder, in the civil action entitled Securities and Exchange Commission v. Craig V. Sizer, et 

al., Civil Action Number 16-cv-24106-JAL, in the United States District Court for the Southern 

District of Florida.  

 

 3. The Commission’s complaint alleged that Respondent offered and sold Sanomedics 

and Fun Cool Free securities to individual investors while aiding and abetting Mesa, who acted as 

an unregistered broker.  The Commission further alleged that Respondent made misrepresentations 

and omissions to investors that investor funds would be used by Sanomedics and Fun Cool Free to 

develop the companies’ businesses, and that no commissions or fees would be charged to investors.  

Respondent also participated in a fraudulent scheme with Mesa by misappropriating millions of 

dollars of investor proceeds, which were used for their personal expenses and for paying 

undisclosed commissions to sales agents.    

 

IV. 

 

 In view of the foregoing, the Commission deems it appropriate and in the public interest to 

impose the sanctions agreed to in Respondent’s Offer. 

 

 Accordingly, it is hereby ORDERED pursuant to Section 15(b)(6) of the Exchange Act, 

that Respondent be, and hereby is barred from association with any broker, dealer, investment 

adviser, municipal securities dealer, municipal advisor, transfer agent, or nationally recognized 

statistical rating organization.  

 

 

 

 

 

 

 

 

 

 

 



 3 

 

 

Any reapplication for association by the Respondent will be subject to the applicable laws 

and regulations governing the reentry process, and reentry may be conditioned upon a number of 

factors, including, but not limited to, the satisfaction of any or all of the following:  (a) any 

disgorgement ordered against the Respondent, whether or not the Commission has fully or partially 

waived payment of such disgorgement; (b) any arbitration award related to the conduct that served 

as the basis for the Commission order; (c) any self-regulatory organization arbitration award to a 

customer, whether or not related to the conduct that served as the basis for the Commission order; 

and (d) any restitution order by a self-regulatory organization, whether or not related to the conduct 

that served as the basis for the Commission order. 

 

 By the Commission. 

 

 

 

 

       Brent J. Fields 

       Secretary