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SEC Announces Settlement Relating to Alleged “Boiler Room”

Alleged “Boiler Room”

The SEC claimed that Craig Sizer and 12 others, mostly from South Florida, defrauded investors out of approximately $23 million through an alleged “boiler room scheme.”  Sizer co-founded Sanomedics and Fun Cool Free, Inc.  He hired Michael Mesa who allegedly colluded with Sizer to run the South Florida boiler room.

As alleged by the SEC, Sizer provided talking points to the brokers.  These talking points specifically mentioned the fact that investor funds would not be used to pay the brokers’ sales commissions.  Additionally, Sizer allegedly took Sanomedics investor funds and used those funds to pay Mesa, knowing that those funds would be used to pay sales commissions.

On October 13, 2016, a final Consent judgment was entered against Sizer, which bars him from the trading industry.  He may reapply for a license but not before he disgorges all ill-gotten gains and pays the other fines and fees he was ordered to pay.

You can read more about this case at https://www.sec.gov/litigation/admin/2016/34-79121.pdf .  If you have any questions about this or other securities-related matters, then please contact Tomlinson & Shapiro at (312) 715-8770.

This post was written by Michael Tomlinson

Michael Shapiro
(312) 715-8770
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