SEC v. DiScala

DiScala allegedly worked with co-defendants to inflate the price of CodeSmart stock and profit at the expense of brokerage customers, according to the SEC. The shares were allegedly restricted and sold in an unregistered offering. DiScala and certain of his co-defendants allegedly engaged in a promotional campaign to hype CodeSmart stock with materially misleading press releases. According to the complaint, once DiScala and certain of his co-defendants dumped their own shares on the market, CodeSmart’s stock price crashed and the investors’ shares became worthless and investors collectively lost millions of dollars.

Summary generated from official Securities and Exchange Commission press release