SEC v. Craig Josephberg; and Ira Shapiro, No. LR-25636, Eastern District of New York (Feb. 9, 2023) — Press Release
raw: DiScala et al
DiScala et al, No. 1:14-cv-4346 (E.D.N.Y. Feb. 9, 2023)
summary
The SEC obtained final judgments against Craig Josephberg and Ira Shapiro for a scheme to manipulate CodeSmart Holdings, Inc. stock, resulting in injunctions and penny stock bars.
paragraph
The SEC charged Josephberg and Shapiro with orchestrating a scheme to manipulate CodeSmart Holdings, Inc. securities to profit at the expense of brokerage clients. Josephberg agreed to disgorge over $735,000 in ill-gotten gains, which was satisfied via a parallel criminal restitution order. Both defendants received permanent injunctions and penny stock bars, with Shapiro also facing an officer and director bar.
narrative
The SEC has secured final judgments against Craig Josephberg and Ira Shapiro regarding a securities manipulation scheme involving CodeSmart Holdings, Inc. that began in 2013. As CEO of CodeSmart, Shapiro engaged in a promotional campaign to artificially inflate stock prices, while Josephberg directed his brokerage clients to invest in the company to facilitate the fraud. The defendants faced various charges under the Securities Act of 1933 and the Exchange Act of 1934, including Rule 10b-5. Through consent judgments, both individuals were permanently enjoined from future violations and received penny stock bars. Additionally, Shapiro was subject to an officer and director bar. Josephberg agreed to disgorge more than $735,000 in ill-gotten gains, a requirement satisfied by a restitution order from a parallel criminal proceeding.
Classified market-manipulation(confidence 100%). EDGAR detection: forms SC 13D/G/13F· recall 53% / precision 9%. detection rule →
Statutes
Sections 5(a), 5(c) and 17(a) of the Securities ActSections 5(a), 5(c) and 17(a) of the Securities ActSections 5(a), 5(c) and 17(a) of the Securities ActSections 9(a) and 10(b) of the Securities Exchange ActSections 9(a) and 10(b) of the Securities Exchange ActRule 10b-5
Parties
Securities and Exchange CommissionDiScalaCraig JosephbergIra Shapiro
Keywords
josephbergshapirofinal judgmentsjudgments againstcodesmartsecuritiesdiscalasecexchangesecurities exchangejosephberg shapirobrokerage clientssections securitiesexchange thereunderfinal
Extracted insights
Dollar amounts 1
- $735K $735,000 $100K–$1M
Entities 9
- person craig josephberg
- person ira shapiro
- person Joseph Sansone
- person lindsay moilanen
- agency sec litigation
- agency Securities and Exchange Commission
- person sheldon l. pollock
- person todd brody
- court u.s. district court for the eastern district of new york
Triples 12
- SEC obtains final judgments against Craig Josephberg and Ira Shapiro
- U.S. District Court For The Eastern District Of New York entered final judgments against Craig Josephberg and Ira Shapiro
- Craig Josephberg charged with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Sections 9(a) and 10(b) of the Exchange Act and Rule 10b-5
- Ira Shapiro charged with violating Section 10(b) of the Exchange Act and Rule 10b-5
- Ira Shapiro engaged in promotional campaign to artificially inflate the price of CodeSmart stock
- Craig Josephberg invested brokerage clients in CodeSmart
- Craig Josephberg agreed to disgorge $735,000 in ill-gotten gains and prejudgment interest
- Ira Shapiro consented to officer and director bar
- Todd Brody handles SEC litigation
- Lindsay Moilanen handles SEC litigation
- Sheldon L. Pollock supervises SEC litigation
- Joseph Sansone supervises SEC litigation
Extracted body text (2,235c)
SEC Obtains Final Judgments Against Two Defendants in CodeSmart Fraud Litigation Release No. 25636 / February 9, 2023 Securities and Exchange Commission v. DiScala et al., No. 1:14-cv-4346 (E.D.N.Y. filed July 17, 2014; amended January 19, 2016). On February 8, 2023, the U.S. District Court for the Eastern District of New York entered final judgments against Craig Josephberg and Ira Shapiro, enjoining them from violating certain provisions of the federal securities law and imposing other remedies. According to the SEC's complaint, starting in 2013, Josephberg and Shapiro, along with the other defendants, were involved in a scheme to manipulate the securities of CodeSmart Holdings, Inc. ("CodeSmart"). The SEC alleged that Shapiro, as CEO of CodeSmart, engaged in a promotional campaign to artificially inflate the price of the stock. Meanwhile Josephberg and another individual invested their brokerage clients in CodeSmart. In short, the SEC alleged that the plan was for the defendants to profit at the expense of Josephberg's brokerage clients. The SEC's complaint charged Josephberg with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder and charged Shapiro with violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. On February 8, 2023, the Court entered separate final judgments against Josephberg and Shapiro by consent in which they each agreed to be permanently enjoined from violations of the charged provisions and to penny stock bars. Shapiro additionally consented to an officer and director bar. Josephberg agreed to disgorge over $735,000 in ill-gotten gains and prejudgment interest thereon, the payment of which was deemed satisfied by the restitution order in the parallel criminal proceeding, United States v. DiScala, et al., 14 Cr. 399 (E.D.N.Y.). The SEC's litigation is being handled by Todd Brody and Lindsay Moilanen of the New York Regional Office and is being supervised by Sheldon L. Pollock and Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation.OCR text (2,235c · html-text · 99% conf)
SEC Obtains Final Judgments Against Two Defendants in CodeSmart Fraud Litigation Release No. 25636 / February 9, 2023 Securities and Exchange Commission v. DiScala et al., No. 1:14-cv-4346 (E.D.N.Y. filed July 17, 2014; amended January 19, 2016). On February 8, 2023, the U.S. District Court for the Eastern District of New York entered final judgments against Craig Josephberg and Ira Shapiro, enjoining them from violating certain provisions of the federal securities law and imposing other remedies. According to the SEC's complaint, starting in 2013, Josephberg and Shapiro, along with the other defendants, were involved in a scheme to manipulate the securities of CodeSmart Holdings, Inc. ("CodeSmart"). The SEC alleged that Shapiro, as CEO of CodeSmart, engaged in a promotional campaign to artificially inflate the price of the stock. Meanwhile Josephberg and another individual invested their brokerage clients in CodeSmart. In short, the SEC alleged that the plan was for the defendants to profit at the expense of Josephberg's brokerage clients. The SEC's complaint charged Josephberg with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, Sections 9(a) and 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder and charged Shapiro with violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. On February 8, 2023, the Court entered separate final judgments against Josephberg and Shapiro by consent in which they each agreed to be permanently enjoined from violations of the charged provisions and to penny stock bars. Shapiro additionally consented to an officer and director bar. Josephberg agreed to disgorge over $735,000 in ill-gotten gains and prejudgment interest thereon, the payment of which was deemed satisfied by the restitution order in the parallel criminal proceeding, United States v. DiScala, et al., 14 Cr. 399 (E.D.N.Y.). The SEC's litigation is being handled by Todd Brody and Lindsay Moilanen of the New York Regional Office and is being supervised by Sheldon L. Pollock and Joseph Sansone. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of New York and the Federal Bureau of Investigation.