On March 31, 2023, in a landmark judgment, the U.S. District Court of New York’s Eastern District handed down final judgments against Darren Ofsink & Michael T. Morris. Both men were accused of breaking federal securities laws. The ruling includes various remedies, as well a ban against further transgressions.
According to the Securities and Exchange Commission, the duo, as well as several others, were implicated in a manipulative scheme involving securities of CodeSmart Holdings, Inc. The scheme has been going on since 2013, the SEC said. Ofsink was accused in the SEC complaint of facilitating CodeSmart’s reverse merge into a shell company and selling its shares clandestinely. It also alleged that Ofsink had concealed the holdings of other influential stakeholders. Morris was accused, in contrast, of using matched trading and unregistered stock to artificially increase the price of CodeSmart securities.
Morris was accused under Sections 5, 5(c), and 17(a) of Securities Act of 1933. He also faced charges under Sections 9(a), and the antifraud provisions of 10 (b) of Securities Exchange Act of 1964. Ofsink also faced charges under Sections 5, 5(c), and 17(a) of the Securities Act.
In response to the Court’s decision, both defendants consented to permanent orders, which prohibited future violations and barred penny stocks. Ofsink and Morris also agreed to forfeit the gains they had gotten from illegal means. Ofsink surrendered $292,409.11, while Morris surrendered $27,526, a sum that was deemed sufficient by the restitution orders in the criminal case United States v. DiScala & Co., 14 Cr. 399 (E.D.N.Y.).
Todd Brody and Lindsay Moilanen, of the New York Regional Office, were in charge of the SEC litigation. Sheldon L. Pollock supervised the case. Joseph Sansone was the supervisor. The SEC thanked the U.S. Attorney’s Office of Eastern District of New York, and the Federal Bureau of Investigation (FBI) for their help in this case.
Recover Investment Losses
Do not let your investment losses ruin the stability of your finances. Speak with an expert. investment fraud Call an attorney today. At Haselkorn & Thibaut, we pride ourselves on being a trusted ally in your battle against investment fraud. Our experienced team can navigate the complicated labyrinth that is securities litigation and arbitration.
We are the first choice for those who want justice for their losses in investment. Our track record shows a 98% success rate, and we have recovered millions for investors.
Do not delay seeking justice. Our attorneys will carefully examine your case and advise you on how to recover your losses. If we fail to recover for you, there is no fee.
Contact Haselkorn & Thibaut today for a complimentary consultation at 1-888-784-3315or visit our website at InvestmentFraudLawyers.com.
Who is SEC?
The U.S. Securities and Exchange Commission, or SEC, is a federal government agency responsible for overseeing and applying federal securities laws. Its main mission is to safeguard investors, ensure fair, efficient, and orderly markets, and promote capital formation. The SEC mandates that public companies disclose financial and other relevant information to the general public. This allows investors to make informed decisions by having access to reliable and comprehensive information. Visit the website to learn more. SEC’s Website.
