On May 4, 2022, the SEC filed a complaint alleging Michael Forster engaged in manipulative trading in connection with a microcap issuer he controlled. According to the SEC's complaint, Forster violated the antifraud provisions of Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder as well as Section 17(a) of the Securities Act of 1933. Forster consented to a court order that permanently enjoins him from violating these provisions, as well as permanently bars him from participating in the offering of a penny stock. The judgment is pending court approval.

The SEC's investigation was conducted by Christine Ely, Philip Fortino, Lindsay Moilanen, and Sheldon L. Pollock, and the case was supervised by Lara S. Mehraban and Mr. Pollock. The litigation will be led by Ms. Ely, Mr. Fortino, and Ms. Moilanen. The SEC appreciates the assistance of the United States Attorney's Office for the Southern District of California and the Federal Bureau of Investigation.