U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 25958 / March 27, 2024
Court Orders Corporate Officer Who Facilitated Microcap Scheme to Pay over $350,000
Securities and Exchange Commission v. Cattlin et al., No. 21-cv-5294 (E.D.N.Y. filed September 23, 2021)
On March 26, 2024, a federal court in New York entered a final judgment against United Kingdom resident Daniel Cattlin for his role in a scheme that generated more than $5 million of illegal sales of stock in two microcap companies. Among other things, the court ordered Cattlin to pay a total of $354,821.62.
As alleged in the SEC’s complaint, filed in September 2021, Cattlin and co-defendant William R. Shupe helped Timothy and Trevor Page secretly dump large quantities of microcap stock yielding millions of dollars in illegal stock proceeds. According to the complaint, Cattlin was the CEO of two microcap companies where he acted at the Pages’ behest to cause the companies to take various actions for the Pages’ benefit, including issuing stock to the Pages’ various nominee entities and coordinating press releases used during promotional campaigns designed to increase the price of and demand for the stock. Cattlin allegedly also coordinated with the Pages to provide misleading information in response to Commission investigative subpoenas and during an interview with Commission staff. The complaint alleges that for his assistance, Cattlin received a portion of the Pages’ illegal stock proceeds.
The final judgment, entered by default against Cattlin, enjoins him from future violations, or aiding and abetting violations, of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The judgment orders Cattlin to pay disgorgement and prejudgment interest of $124,357.62, a civil penalty of $230,464, and imposes penny stock and officer and director bars. Shupe settled in April, paying a $100,000 penalty.
The SEC staff responsible for this matter include Kathleen Shields, Nita Klunder, and Amy Gwiazda in the SEC’s Boston Regional Office.
Judgment - William Shupe and Daniel Cattlin