Jillian Sidoti – Fraudulent Unregistered Securities 2023

On May 13, 2022, the U.S. District Court for the Central District of California entered a final judgment against Jillian Sidoti, a California attorney whom the SEC previously charged for her role in a fraudulent scheme to sell unregistered securities to the public.

Jillian Sidoti was charged by the SEC for selling fraudulent unregistered securities.

Jillian Sidoti is an attorney who has distinguished herself as an authority in the fields of crowdfunding and private placement offerings. She has built a name for herself as a specialist in these areas. However, in 2021, she was accused of engaging in fraudulent and unregistered securities offerings by the Securities and Exchange Commission (SEC). This accusation was brought against her by the SEC. This article will investigate the charges that have been made against Jillian Sidoti, as well as the possible impact such allegations could have on crowdfunding and private placement businesses.

Jillian Sidoti: some background information

Jillian Sidoti is a member of the Trowbridge Sidoti LLP legal team in addition to being a practicing attorney in the state of California. She has been working as an attorney for more than a decade, and she has devoted her profession to assisting business owners and new ventures in accumulating financial backing through crowdfunding and private placements.

Jillian Sidoti
Jillian Sidoti

Jillian Sidoti is a prolific writer and speaker on the subject of crowdfunding and private placements, in addition to being an attorney who practices law. She is the author of a number of books on the topic and has been a keynote speaker at a significant number of conventions and seminars.

The Charges That Have Been Leveled Against Jillian Jillian Sidoti

Jillian Sidoti was the subject of a complaint brought against her by the Securities and Exchange Commission (SEC) in March 2021. The complaint said that she had participated in fraudulent and unregistered securities offerings. According to the allegations contained in the complaint, Jillian Sidoti had deceived investors by providing them with incorrect and misleading information in connection with a number of crowdfunding and private placement deals.

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In particular, the SEC contended that Jillian Sidoti had made misleading representations to the effect that particular investments were secured by real estate when in reality, this was not the case. In addition to this, the SEC asserted that Sidoti had made representations that were misleading regarding the risks that were connected with the investments and that he had omitted to disclose information that was material to investors.

Lastly, the SEC asserted that Jillian Sidoti had violated federal securities laws by participating in unregistered securities offerings. This allegation was made by the SEC. According to the Securities and Exchange Commission (SEC), Sidoti had failed to furnish investors with the essential disclosures and had also failed to file the relevant registration documents with the SEC.

Jillian Sidoti
Jillian Sidoti

The Possible Effects That This Will Have On The Crowdfunding And Private Placement Industries

It is important to note that Jillian Sidoti is one of the most well-known attorneys working in the crowdfunding and private placement industries, which makes the claims that have been made against her noteworthy. These fields, which have previously been seen as dangerous and unregulated, have been given more legitimacy thanks to her knowledge and reputation in the field.

Nevertheless, the claims that have been made against Jillian Sidoti have the potential to damage the integrity of these industries, particularly among investors. It may become more challenging for entrepreneurs and startups to raise the financing they need to build their firms if investors lose faith in the integrity of crowdfunding and private placement offerings.

According to the SEC’s complaint, filed on October 19, 2020, Sidoti acted as the attorney for penny stock company Blake Insomnia Therapeutics, drafting and signing documents that she knew contained materially false information regarding the operations and control of Blake. Sidoti allegedly then arranged to sell almost all of Blake’s stock to multiple nominee shareholders to obscure the fact that the purchasers were a single control group.

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The complaint further alleges that Sidoti authored opinion letters containing false statements about the control of Blake to induce Blake’s transfer agent to remove restrictive legends from its stock certificates and to induce the Depository Trust Corporation to accept Blake’s shares for deposit. According to the complaint, Sidoti’s actions enabled the control group to evade legal restrictions on the sales of stock by affiliates and sell over five million Blake shares into the public market.

Without admitting or denying the allegations in the SEC’s complaint, Sidoti consented to the entry of a final judgment permanently enjoining her from violating the securities registration and antifraud provisions of Sections 5(a), 5(c), 17(a)(1), and 17(a)(3) of the Securities Act of 1933, and the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Sidoti also consented to the imposition of a five-year penny stock bar and a five-year conduct-based injunction that restricts her ability to prepare opinion letters, and to pay a $22,000 civil penalty and just under $14,169 in disgorgement and $4,665 in prejudgment interest.

The SEC staff responsible for this matter includes Alexandra Lavin, Kathleen Shields, Eric Forni, Trevor Donelan, Rebecca Israel, David Scheffler, J. Lauchlan Wash, and Amy Gwiazda of the SEC’s Boston Regional Office.

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Provided by SEC.gov

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