SEC v. Medallion Financial Corp.; Andrew Murstein; Lawrence Meyers; and Ichabod’s Cranium, Inc., No. LR-26321, Southern District of New York (June 6, 2025) — Press Release

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26321 / June 6, 2025 Securities and Exchange Commission v. Medallion Financial Corp., et al., No. 21-cv-11125-LAK (S.D.N.Y filed Dec. 29, 2021) SEC Obtains Final Judgments Against Participants in Schemes to Boost Financial Company’s Stock Price On May 30, 2025, the U.S. District Court for the Southern District of New York entered final consent judgments against Medallion Financial Corp. and its President, Andrew Murstein, as well as Lawrence Meyers and his company, Ichabod’s Cranium, Inc. The SEC’s Complaint, filed on December 29, 2021, and amended on April 26, 2022, alleged that Murstein and Medallion directed two separate schemes to inflate Medallion Financial’s stock price, in part with the assistance of California-based media strategy company, Ichabod's Cranium, and its owner, Lawrence Meyers. On September 18, 2024, the District Court denied the defendants’ motions to dismiss with respect to all but one of the SEC’s claims. The defendants consented to the final judgments without admitting or denying the allegations in the amended complaint. The final judgment against Medallion Financial and Murstein permanently enjoins Medallion Financial from violating Sections 17(a)(1) and 17(a)(3), and 17(b) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder; orders it to pay a $3 million civil penalty; and orders it to comply with certain undertakings to retain an independent consultant to conduct a review of its compliance policies and procedures and internal controls, and to create a Chief Compliance Officer role. The judgment permanently enjoins Murstein from violating Sections 17(a)(1) and 17(a)(3), and 17(b) of the Securities Act, Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-2 thereunder, and from aiding and abetting future violations of Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder; and orders him to pay a $1 million civil penalty. The final judgment against Meyers and Ichabod’s Cranium permanently enjoins them from violating Section 17(b) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and orders Meyers to pay a $100,000 civil penalty. The SEC’s litigation was led by David Stoelting, Christopher Colorado, and Eric Taffet, with the assistance of Kenneth Gottlieb, and was supervised by Sheldon L. Pollock and Celeste Chase, all of the SEC’s New York Regional Office. For further information, see Litigation Release No. 25297, December 29, 2021.

U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26321 / June 6, 2025 Securities and Exchange Commission v. Medallion Financial Corp., et al., No. 21-cv-11125-LAK (S.D.N.Y filed Dec. 29, 2021) SEC Obtains Final Judgments Against Participants in Schemes to Boost Financial Company’s Stock Price On May 30, 2025, the U.S. District Court for the Southern District of New York entered final consent judgments against Medallion Financial Corp. and its President, Andrew Murstein, as well as Lawrence Meyers and his company, Ichabod’s Cranium, Inc. The SEC’s Complaint, filed on December 29, 2021, and amended on April 26, 2022, alleged that Murstein and Medallion directed two separate schemes to inflate Medallion Financial’s stock price, in part with the assistance of California-based media strategy company, Ichabod's Cranium, and its owner, Lawrence Meyers. On September 18, 2024, the District Court denied the defendants’ motions to dismiss with respect to all but one of the SEC’s claims. The defendants consented to the final judgments without admitting or denying the allegations in the amended complaint. The final judgment against Medallion Financial and Murstein permanently enjoins Medallion Financial from violating Sections 17(a)(1) and 17(a)(3), and 17(b) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder; orders it to pay a $3 million civil penalty; and orders it to comply with certain undertakings to retain an independent consultant to conduct a review of its compliance policies and procedures and internal controls, and to create a Chief Compliance Officer role. The judgment permanently enjoins Murstein from violating Sections 17(a)(1) and 17(a)(3), and 17(b) of the Securities Act, Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-2 thereunder, and from aiding and abetting future violations of Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder; and orders him to pay a $1 million civil penalty. The final judgment against Meyers and Ichabod’s Cranium permanently enjoins them from violating Section 17(b) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and orders Meyers to pay a $100,000 civil penalty. The SEC’s litigation was led by David Stoelting, Christopher Colorado, and Eric Taffet, with the assistance of Kenneth Gottlieb, and was supervised by Sheldon L. Pollock and Celeste Chase, all of the SEC’s New York Regional Office. For further information, see Litigation Release No. 25297, December 29, 2021.