SEC Sues Attorney for Improper Professional Conduct

ADMINISTRATIVE PROCEEDING
File No. 3-22152

September 20, 2024 – The Securities and Exchange Commission today announced that it has filed a settled administrative proceeding against Matthew C. McMurdo, an attorney residing in New Jersey who is licensed to practice law in New York, for repeatedly failing to adhere to professional standards to which he was subject. 

According to the SEC’s Order, McMurdo was engaged as counsel for Industry Source Consulting, Inc., formerly known as Vega Biofuels, Inc. (“INSO”), a non-SEC reporting public company, from July 18, 2016, through September 8, 2021. The Order finds that, during that period, McMurdo prepared, signed, and issued ten legal opinion letters containing false or misleading information to support the continued listing of INSO on OTC Markets. According to the SEC’s Order, McMurdo failed to conduct any meaningful due diligence before he issued letters that he knew investors would rely upon and ignored red flags concerning the falsity of information in his opinion letters. The Order further finds that McMurdo failed to notify OTC Markets when he no longer provided services to INSO.

The Order finds that McMurdo engaged in improper professional conduct within the meaning of Section 4C(a)(2) of the Securities Exchange Act of 1934 and Rule 102(e)(1)(ii) of the SEC’s Rules of Practice. McMurdo agreed to the entry of an order suspending him from appearing and practicing before the SEC as an attorney. Under the Order, McMurdo is permitted to apply for reinstatement after one year.

The SEC’s investigation was conducted by Atlanta Regional Office enforcement staff including Katherine Shelton. The case was supervised by Natalie Brunson and Justin Jeffries.