SEC v. Matthew Nicosia; William Reininger; Fabrizio Di Carlo; and Ronald Touchard, No. LR-25959, Eastern District of New York (Mar. 28, 2024) — Press Release
raw: Matthew Nicosia, William Reininger, Fabrizio Di Carlo, and Ronald Touchard
Matthew Nicosia, William Reininger, Fabrizio Di Carlo, and Ronald Touchard, No. 1:22-cv-05761 (E.D.N.Y. Mar. 28, 2024)
summary
The SEC obtained a final judgment against Canadian resident Fabrizio Di Carlo for his role in a microcap fraud scheme targeting retail investors through misleading Odyssey Group International Inc. stock promotions.
paragraph
Fabrizio Di Carlo was charged for orchestrating a microcap fraud scheme that used high-pressure sales to dump Odyssey Group International Inc. shares. The court ordered him to pay over $140,000, which includes $43,970 in disgorgement and interest plus a $100,000 civil penalty. His judgment also includes a penny stock bar and an injunction against future violations of the Securities Exchange Act.
narrative
The SEC obtained a final default judgment against Canadian resident Fabrizio Di Carlo for his role in a microcap fraud scheme targeting retail investors. Between 2019 and 2020, Di Carlo worked with co-defendants Matthew Nicosia, William Reininger, and Ronald Touchard to promote Odyssey Group International Inc. stock through misleading sales calls and emails. The scheme failed to disclose that Nicosia and Reininger were insiders who controlled most of the stock and were dumping shares into the artificially created demand. To resolve the matter, Di Carlo must pay over $140,000 in combined disgorgement, interest, and civil penalties. Additionally, the court imposed a penny stock bar and enjoined him from future violations of Section 10(b) of the Securities Exchange Act. This enforcement action was supported by the Financial Industry Regulatory Authority.
Classified pump-and-dump(confidence 95%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Parties
Securities and Exchange CommissionMatthew NicosiaFabrizio Di CarloRonald TouchardWilliam Reininger
Keywords
carlonicosiareiningermatthew nicosianicosia williamwilliam reiningerfabrizio carloronald touchardsecreininger fabriziocarlo ronaldsecurities exchangenicosia reiningerstocktouchard
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 3
- $140K $140,000 $100K–$1M
- $100K $100,000 $100K–$1M
- $44K $43,970 $10K–$100K
Entities 9
- agency assistance of the financial industry regulatory authority
- person fabrizio di carlo
- person final judgment
- person odyssey insiders
- company potential investors to purchase stock in odyssey group international inc.
- person ronald touchard
- agency sec staff
- agency Securities and Exchange Commission
- court u.s. district court for the eastern district of new york
Triples 11
- U.S. District Court For The Eastern District Of New York entered final judgment against Fabrizio Di Carlo
- Judgment orders Fabrizio Di Carlo to pay over $140,000
- Fabrizio Di Carlo and Co-defendants worked with others to fraudulently sell stock in microcap companies
- Ronald Touchard introduced Matthew Nicosia and William Reininger to Fabrizio Di Carlo
- Fabrizio Di Carlo identified and called potential investors to purchase stock in Odyssey Group International Inc.
- Matthew Nicosia and William Reininger were Odyssey insiders
- Final Judgment enjoins Fabrizio Di Carlo from future violations of Section 10(b) of the Securities Exchange Act Of 1934 and Rule 10b-5
- Judgment orders Fabrizio Di Carlo to pay disgorgement and prejudgment interest of more than $43,970 and a civil penalty of $100,000
- Judgment imposes a penny stock bar
- SEC Staff include David D'Addio, Nita Klunder, and Paul Block of the Boston Regional Office
- Securities And Exchange Commission appreciates assistance of the Financial Industry Regulatory Authority
PDF (from attached: judgment)
Text layers
Extracted body text (2,397c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25959 / March 28, 2024 SEC Obtains Final Judgment Against Canadian Individual in Microcap Fraud Scheme Targeting Retail Investors Securities and Exchange Commission v. Matthew Nicosia, William Reininger, Fabrizio Di Carlo, and Ronald Touchard, Civ. Action No. 1:22-cv-05761 (E.D.N.Y. filed Sept. 27, 2022) On March 27, 2024, the U.S. District Court for the Eastern District of New York entered a final judgment against Canadian resident Fabrizio Di Carlo whom the SEC had charged for his role in a microcap fraud scheme targeting retail investors. Among other things, the judgment orders Di Carlo to pay a total of over $140,000. According to the SEC's complaint, filed on September 27, 2022, from August 2019 to at least September 2020, DiCarlo, along with co-defendants Matthew Nicosia, William Reininger, and Ronald Touchard, worked with others to fraudulently sell stock in microcap companies by making misleading statements during high pressure sales calls and/or email promotions. The SEC alleges that, as part of the scheme, Touchard introduced Nicosia and Reininger to Di Carlo, who identified and called potential investors to pressure them to purchase stock in Odyssey Group International Inc. According to the complaint, Nicosia and Reininger were Odyssey insiders working with an individual previously charged by the SEC, Charlie Abujudeh, to dump Odyssey shares during the promotional campaigns they were funding. The SEC alleges that Di Carlo and his stock promoters were deceptive and failed to disclose that Nicosia and Reininger were Odyssey insiders, controlled nearly all of the stock that was deposited and available for public trading, and were selling their Odyssey stock into the increased demand created by the promotions they were funding and controlling. The final judgment, entered by default against Di Carlo, enjoins him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment orders Di Carlo to pay disgorgement and prejudgment interest of more than $43,970, a civil penalty of $100,000, and imposes a penny stock bar. The SEC staff responsible for this matter include David D'Addio, Nita Klunder, and Paul Block of the Boston Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. Final Judgment
OCR text (2,397c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25959 / March 28, 2024 SEC Obtains Final Judgment Against Canadian Individual in Microcap Fraud Scheme Targeting Retail Investors Securities and Exchange Commission v. Matthew Nicosia, William Reininger, Fabrizio Di Carlo, and Ronald Touchard, Civ. Action No. 1:22-cv-05761 (E.D.N.Y. filed Sept. 27, 2022) On March 27, 2024, the U.S. District Court for the Eastern District of New York entered a final judgment against Canadian resident Fabrizio Di Carlo whom the SEC had charged for his role in a microcap fraud scheme targeting retail investors. Among other things, the judgment orders Di Carlo to pay a total of over $140,000. According to the SEC's complaint, filed on September 27, 2022, from August 2019 to at least September 2020, DiCarlo, along with co-defendants Matthew Nicosia, William Reininger, and Ronald Touchard, worked with others to fraudulently sell stock in microcap companies by making misleading statements during high pressure sales calls and/or email promotions. The SEC alleges that, as part of the scheme, Touchard introduced Nicosia and Reininger to Di Carlo, who identified and called potential investors to pressure them to purchase stock in Odyssey Group International Inc. According to the complaint, Nicosia and Reininger were Odyssey insiders working with an individual previously charged by the SEC, Charlie Abujudeh, to dump Odyssey shares during the promotional campaigns they were funding. The SEC alleges that Di Carlo and his stock promoters were deceptive and failed to disclose that Nicosia and Reininger were Odyssey insiders, controlled nearly all of the stock that was deposited and available for public trading, and were selling their Odyssey stock into the increased demand created by the promotions they were funding and controlling. The final judgment, entered by default against Di Carlo, enjoins him from future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment orders Di Carlo to pay disgorgement and prejudgment interest of more than $43,970, a civil penalty of $100,000, and imposes a penny stock bar. The SEC staff responsible for this matter include David D'Addio, Nita Klunder, and Paul Block of the Boston Regional Office. The SEC appreciates the assistance of the Financial Industry Regulatory Authority. Final Judgment