SEC v. Phillip W. Offill, Jr.; and Justin W. Herman, No. LR-26249, Northern District of Texas (Feb. 19, 2025) — Press Release
raw: Phillip W. Offill, Jr. and Justin W. Herman
Phillip W. Offill, Jr. and Justin W. Herman, No. 3:22-CV-00121 (Feb. 19, 2025)
summary
Phillip W. Offill, Jr. and Justin W. Herman orchestrated a penny stock fraud scheme, resulting in a dismissal for Offill due to death and a $1,117,325 judgment against Herman.
paragraph
The SEC charged Phillip W. Offill, Jr. and Justin W. Herman with violating antifraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The defendants used forged documents and sham agreements to misappropriate and sell millions of shares of a microcap company. Justin W. Herman was ordered to pay $1,117,325 in disgorgement and interest, which was satisfied through parallel criminal restitution.
narrative
The SEC charged Phillip W. Offill, Jr. and Justin W. Herman with orchestrating a scheme to misappropriate and sell millions of shares of a microcap company using forged documents and sham agreements. The defendants were charged with violating Section 10(b) of the Securities Exchange Act of 1934 and Sections 17(a) of the Securities Act of 1933. Following Offill’s death, the U.S. District Court for the Northern District of Texas dismissed the claims against him. For Herman, the Court entered a final judgment that included a permanent injunction against future securities violations. Herman was also ordered to pay $1,117,325 in disgorgement and prejudgment interest, a sum satisfied by criminal restitution in a parallel case. The investigation and litigation were led by the SEC’s Fort Worth Regional Office.
Classified pump-and-dump(confidence 95%). EDGAR detection: forms S-8/S-1/424B/8-K· recall 69% / precision 12%. detection rule →
Statutes
Parties
Securities and Exchange CommissionPhillip W. Offill, Jr.Justin W. Herman
Keywords
offillsecurities exchangehermanphillip offilljustin hermansecuritiesoffill justinexchange commissionexchangesecphillipjustincommissionfinalstock
Extracted insights
Dollar amounts 1
- $1.12M $1,117,325 $1M–$10M
Entities 12
- person b. david fraser
- person carol stumbaugh
- person Derek Kleinmann
- person eric r. werner
- person justin w. herman
- person keefe bernstein
- person Matthew Gulde
- company misappropriating and selling millions of shares of a penny stock company
- agency Securities and Exchange Commission
- person Ty Martinez
- person tyson m. lies
- court u.s. district court for the northern district of texas
Triples 21
- U.S. District Court For The Northern District Of Texas entered final judgment dismissing claims against Phillip W. Offill, Jr.
- Phillip W. Offill, Jr. died on January 31, 2025
- Securities And Exchange Commission obtained final judgment against Justin W. Herman
- Justin W. Herman charged with misappropriating and selling millions of shares of a penny stock company
- Phillip W. Offill, Jr. charged with misappropriating and selling millions of shares of a penny stock company
- Securities And Exchange Commission filed complaint against Phillip W. Offill, Jr. and Justin W. Herman
- Phillip W. Offill, Jr. violated Section 10(b) of the Securities Exchange Act of 1934
- Justin W. Herman violated Section 10(b) of the Securities Exchange Act of 1934
- Phillip W. Offill, Jr. orchestrated fraudulent scheme to misappropriate millions of shares of stock
- Justin W. Herman orchestrated fraudulent scheme to misappropriate millions of shares of stock
- U.S. District Court For The Northern District Of Texas entered final judgment against Justin W. Herman
- U.S. District Court For The Northern District Of Texas enjoined Justin W. Herman from future violations of Section 17(a) of the Securities Act
- U.S. District Court For The Northern District Of Texas ordered Justin W. Herman to pay disgorgement and prejudgment interest of $1,117,325
- Derek Kleinmann conducted Securities And Exchange Commission investigation
- Carol Stumbaugh conducted Securities And Exchange Commission investigation
- Ty Martinez conducted Securities And Exchange Commission investigation
- B. David Fraser supervised Securities And Exchange Commission investigation
- Eric R. Werner supervised Securities And Exchange Commission investigation
- Tyson M. Lies conducted Securities And Exchange Commission litigation
- Matthew Gulde conducted Securities And Exchange Commission litigation
- Keefe Bernstein supervised Securities And Exchange Commission litigation
Extracted body text (2,152c)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26249 / February 19, 2025 Securities and Exchange Commission v. Phillip W. Offill, Jr. and Justin W. Herman, No. 3:22-CV-00121-N-BK (N.D. Tex. filed Jan. 19, 2022) SEC Obtains Final Judgment in Penny Stock Fraud Scheme On January 31, 2025, the U.S. District Court for the Northern District of Texas entered a final judgment dismissing the Securities and Exchange Commission’s claims against Phillip W. Offill, Jr. following Offill’s death. The Commission previously obtained a final judgment against Offill’s co-defendant, Justin W. Herman, who alongside Offill was charged with misappropriating and selling millions of shares of a penny stock company using forged documents and sham agreements. The SEC filed its complaint against Offill and Herman on January 19, 2022, charging both with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder and Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933. The complaint alleged that Offill and Herman orchestrated a fraudulent scheme to misappropriate millions of shares of stock of a microcap company that belonged to the company’s former controlling shareholder and to then sell the stock and share the illicit proceeds between them. On July 16, 2024, the Court entered a final judgment against Herman, permanently enjoining him from future violations of Section 17(a) of the Securities Act and Section 10(b) the Exchange Act and Rule 10b-5 thereunder and from participating in the issuance, purchase, offer, or sale of any security not for his own personal account. The Court also ordered Herman to pay disgorgement and prejudgment interest in the amount of $1,117,325, which the Court deemed satisfied by the criminal restitution ordered in a parallel criminal case. The SEC’s investigation was conducted by Derek Kleinmann, Carol Stumbaugh, and Ty Martinez and supervised by B. David Fraser and Eric R. Werner of the SEC’s Fort Worth Regional Office. The SEC’s litigation was conducted by Tyson M. Lies and Matthew Gulde and supervised by Keefe Bernstein.
OCR text (2,152c · html-text · 99% conf)
U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 26249 / February 19, 2025 Securities and Exchange Commission v. Phillip W. Offill, Jr. and Justin W. Herman, No. 3:22-CV-00121-N-BK (N.D. Tex. filed Jan. 19, 2022) SEC Obtains Final Judgment in Penny Stock Fraud Scheme On January 31, 2025, the U.S. District Court for the Northern District of Texas entered a final judgment dismissing the Securities and Exchange Commission’s claims against Phillip W. Offill, Jr. following Offill’s death. The Commission previously obtained a final judgment against Offill’s co-defendant, Justin W. Herman, who alongside Offill was charged with misappropriating and selling millions of shares of a penny stock company using forged documents and sham agreements. The SEC filed its complaint against Offill and Herman on January 19, 2022, charging both with violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder and Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933. The complaint alleged that Offill and Herman orchestrated a fraudulent scheme to misappropriate millions of shares of stock of a microcap company that belonged to the company’s former controlling shareholder and to then sell the stock and share the illicit proceeds between them. On July 16, 2024, the Court entered a final judgment against Herman, permanently enjoining him from future violations of Section 17(a) of the Securities Act and Section 10(b) the Exchange Act and Rule 10b-5 thereunder and from participating in the issuance, purchase, offer, or sale of any security not for his own personal account. The Court also ordered Herman to pay disgorgement and prejudgment interest in the amount of $1,117,325, which the Court deemed satisfied by the criminal restitution ordered in a parallel criminal case. The SEC’s investigation was conducted by Derek Kleinmann, Carol Stumbaugh, and Ty Martinez and supervised by B. David Fraser and Eric R. Werner of the SEC’s Fort Worth Regional Office. The SEC’s litigation was conducted by Tyson M. Lies and Matthew Gulde and supervised by Keefe Bernstein.