Market Manipulation. Search

SEC v. James M. Schneider and Andrew H. Wilson (blank check shells, 2017)

Settled

Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In October 2017 the SEC charged lawyers James Schneider and Andrew Wilson in Florida with helping a scheme that sold at least 22 undisclosed blank check companies bound for reverse mergers by writing false opinion letters. Both consented to final judgments, Schneider on April 5, 2019 and Wilson on May 6, 2020, with small disgorgement amounts deemed satisfied by criminal orders.

The record

Structured fields for this action, as recorded in our case library.
Agency SEC
Release number LR-23965
Date filed 2017-10-11
Date resolved 2020-05-06
Court U.S. District Court, Southern District of Florida
Status settled
Criminal parallel Yes: charged (James M. Schneider), U.S. District Court, Southern District of Florida, 2017-10-11
Bars imposed penny stock bar (Schneider), conduct-based injunction on providing securities legal services (Schneider)
Defendants James M. Schneider (individual) ; Andrew H. Wilson (individual)
Cited as charged or alleged Exchange Act s.10(b) and Rule 10b-5 ; Securities Act s.17(a) ; Securities Act s.5 (statutes and rules cited in the document; not a finding that they were violated)
Techniques Reverse merger schemes , Unregistered distributions

What was ordered

Civil penalty
—
Disgorgement
$17.7k
Prejudgment interest
$3.6k
Total relief
$21.3k
Alleged gain
—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The SEC announced this matter on October 11, 2017 as release LR-23965, with separate complaints in the Southern District of Florida against James M. Schneider and Andrew H. Wilson. The complaints allege the shells were secretly controlled by Steven Sanders with Daniel McKelvey or Alvin Mirman, and that the opinion letters falsely said the shares were validly issued or free to resell; Schneider allegedly wrote at least 40, Wilson at least five. This library tags the matter as reverse merger schemes and unregistered distributions.

Outcome: the April 5, 2019 judgment against Schneider records his consent, permanently enjoins him, bars him from penny stock offerings and from providing legal services in Rule 144 and similar exemption offerings, and orders $14,703.01 in disgorgement and $3,152.33 in interest, deemed satisfied by the forfeiture order in his criminal case. The May 6, 2020 judgment against Wilson records his consent and orders $3,000 in disgorgement and $460.49 in interest, deemed satisfied by the restitution ordered against him in his criminal case. The money fields sum the two. Neither judgment sets a civil penalty, and both include the standard admission for bankruptcy purposes that the complaint's allegations are true.

What technique is this, and how does it work?

This action is tagged with 2 techniques in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

Timeline

  1. 2017-10-11 Litigation release published
  2. 2019-04-05 Consent final judgment entered against Schneider
  3. 2020-05-06 Consent final judgment entered against Wilson

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Other actions in the library sharing at least one technique tag with this one.

Action Agency Filed Technique Penalty Status
SEC v. Charles Parkinson Lloyd (reverse merger schemes, 2021) SEC 2021-09-15 Reverse Merger Schemes , Unregistered Distributions $40k settled
SEC v. S. Paul Kelley, et al. (reverse merger schemes, 2019) SEC 2019-12-20 Reverse Merger Schemes , Unregistered Distributions — settled
SEC v. Olde Monmouth Stock Transfer Co., Inc. and Matthew J. Troster (reverse merger schemes, 2017) SEC 2017-02-07 Reverse Merger Schemes , Unregistered Distributions $100k settled
SEC v. Abraxas J. Discala, Marc E. Wexler, Matthew A. Bell, Craig L. Josephberg, and Ira Shapiro (reverse merger schemes, 2015) SEC 2015-11-04 Reverse Merger Schemes , Unregistered Distributions — judgment
SEC v. International Capital Group, LLC (reverse merger schemes, 2015) SEC 2015-01-29 Reverse Merger Schemes , Unregistered Distributions $1.5m settled
SEC v. Zachary Miller (unregistered distributions, 2026) SEC 2026-03-05 Unregistered Distributions — settled

Record added September 10, 2026. submit a correction.