CodeSmart- Pump-And-Dump Scheme
Investment Professionals Allegedly Took in Millions of Dollars in an Intricate Pump-and-Dump Scheme Involving Medical Education Company CodeSmart
Abraxas “A.J.” Discala and Marc E. Wexler allegedly worked with brokers Matthew A. Bell and Craig L. Josephberg along with Ira Shapiro, CEO of the medical education company Codesmart, to purportedly orchestrate a multi-million dollar pump-and-dump scheme involving shares of CodeSmart, according to a recent SEC Complaint currently under review by attorneys Joe Peiffer and James Booker.
The aforementioned individuals allegedly acquired 3 million restricted shares of CodeSmart stock after its reverse merger into a public shell company in May 2013, and then flooded the market with the shares under the purported auspices of the shares being unrestricted, the Complaint also notes.
The Peiffer Wolf securities lawyers are currently investigating the sales of CodeSmart shares by investment professionals to their customers.
Investment Professionals Allegedly Issued Materially Misleading CodeSmart Press Releases, Used Client Retirement Funds to Purchase Purportedly Unrestricted Shares
Shapiro also allegedly promoted CodeSmart by issuing materially misleading press releases that were occasionally edited by Discala, according to the aforementioned Complaint being examined by attorneys Joe Peiffer and James Booker.
The SEC further reports that after Bell and Josephberg dumped their stocks and Wexler and Discala reduced their trading, that shares of CodeSmart fell faster than a brick, and thus purportedly completing a classic pump-and-dump scheme, according to SEC reports.
CodeSmart’s stock price shot up to a peak of nearly $7 per share before falling back to earth at its current trading price of under a dime, the SEC reports.
Securities Lawyers Investigating
The Peiffer Wolf securities lawyers often represent investors who lose money as a result of alleged pump-and-dump schemes and are currently investigating the alleged CodeSmart Holdings pump-and-dump scheme orchestrated by investment professionals. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of the alleged CodeSmart pump-and-dump scheme orchestrated by investment professionals are encouraged to contact the securities lawyers at Peiffer Wolf, Joe Peiffer or James Booker, for a free no-obligation evaluation of their recovery options, at 504-523-2434.