Kelly Kabilafkas allegedly orchestrated a fraud that culminated in him and his associates dumping shares in Airborne Wireless Network.
The SEC says the lawyers played a "crucial role" in passing off at least 22 shell companies as legitimate startups.
Fraudsters could be using “the lure of new and emerging technologies to convince potential victims" to invest in companies that promote ICOs.
The SEC alleges stock promoter Shane Whittle orchestrated a "pump-and-dump" scheme that artificially inflated the coffee distributor's share price.
The microcap markets are of increasing concern to regulators, says the U.S. Attorney's Office.
Fifteen individuals and 19 firms allegedly participated in "pump-and-dump" schemes that netted $6.5 million in illegal profits.
Doing so puts the 128 dormant penny-stock companies out of reach of 'microcap fraudsters,' says the Securities and Exchange Commission.
The SEC halted trading in the shares of four thinly traded companies that are "purportedly involved in Ebola prevention, testing or treatment."
