CodeSmart- Pump-And-Dump Scheme

investment fraud attorney ClevelandInvestment 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 Alan Rosca 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 Rosca 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 Alan Rosca 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 Rosca 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 Rosca Wolf, Alan Rosca or James Booker, for a free no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1144 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.