(Schneider) from violating the antifraud and …("Schneider") from violating the antifraud and...

UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

CASE NO.

SECURITIES AND EXCHANGE COMMISSION,

Plaintiff,

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- 1 -

Case 9:17-cv-81142-XXXX Document 1 Entered on FLSD Docket 10/11/2017 Page 1 of 41

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