FINANCIAL FIRM BOSS PAID $1 MILLION TO FAKE STOCK PRICE!

SEC v. Medallion Financial Corp., Andrew Murstein, Lawrence Meyers, et al. — U.S. Securities and Exchange Commission Litigation Release No. 26321, dated June 6, 2025.

The SEC charged Medallion Financial Corp. and its President, Andrew Murstein, along with Lawrence Meyers and his company Ichabod's Cranium, Inc., for orchestrating schemes to artificially boost the company's stock price. Final judgments were entered against all defendants, imposing permanent injunctions and significant civil penalties.

In Plain English

Imagine someone is trying to make their company's stock look more popular than it really is. They might hire people to spread positive but misleading news or pay for articles that make the company seem like a great investment, without telling anyone they were paid. The SEC stepped in to stop this and ensure investors get accurate information.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Inflating Stock Price Medallion Financial Corp. and its President, Andrew Murstein, allegedly directed two separate schemes aimed at artificially increasing the company's stock price. This was done to make the company appear more valuable than it was.
2. Engaging Consultants To execute these schemes, Murstein and Medallion enlisted the help of Lawrence Meyers and his California-based media strategy company, Ichabod's Cranium, Inc.
3. Misleading Communications The schemes likely involved the use of various communication channels to disseminate information that would positively influence investor perception and trading activity, without full disclosure of the paid nature of such promotion.
4. Violation of Securities Laws These actions constituted violations of securities laws, including provisions against fraudulent activities in the purchase or sale of securities and the publication of promotional materials without disclosing compensation.
5. SEC Investigation and Complaint The U.S. Securities and Exchange Commission (SEC) filed a complaint on December 29, 2021, detailing these alleged schemes. An amended complaint was filed on April 26, 2022.
6. Court Denies Dismissal On September 18, 2024, the District Court denied the defendants' motions to dismiss most of the SEC's claims, allowing the case to proceed.
7. Consent Judgments Entered On May 30, 2025, final consent judgments were entered against Medallion Financial Corp., Andrew Murstein, Lawrence Meyers, and Ichabod's Cranium, Inc.
8. Permanent Injunctions The judgments permanently enjoin the defendants from violating various sections of the Securities Act of 1933 and the Securities Exchange Act of 1934, prohibiting future misconduct.
9. Civil Penalties Ordered Medallion Financial Corp. was ordered to pay a $3 million civil penalty. Andrew Murstein was ordered to pay $1 million, and Lawrence Meyers was ordered to pay $100,000.
10. Compliance Measures Medallion Financial Corp. must also comply with undertakings to retain an independent consultant to review its compliance policies and procedures and establish a Chief Compliance Officer role.

The Enforcement Action

On May 30, 2025, the U.S. District Court for the Southern District of New York entered final consent judgments against Medallion Financial Corp. and its President, Andrew Murstein, as well as Lawrence Meyers and his company, Ichabod’s Cranium, Inc. The SEC’s Complaint, filed on December 29, 2021, and amended on April 26, 2022, alleged that Murstein and Medallion directed two separate schemes to inflate Medallion Financial’s stock price, in part with the assistance of California-based media strategy company, Ichabod's Cranium, and its owner, Lawrence Meyers. The defendants consented to the final judgments without admitting or denying the allegations in the amended complaint. The final judgment against Medallion Financial and Murstein permanently enjoins them from violating Sections 17(a)(1) and 17(a)(3), and 17(b) of the Securities Act of 1933 (“Securities Act”), Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5 thereunder, and Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder; orders Medallion Financial to pay a $3 million civil penalty and comply with certain undertakings to retain an independent consultant and create a Chief Compliance Officer role. The judgment permanently enjoins Murstein from violating Sections 17(a)(1) and 17(a)(3), and 17(b) of the Securities Act, Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-2 thereunder, and from aiding and abetting future violations of Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11 and 13a-13 thereunder; and orders him to pay a $1 million civil penalty. The final judgment against Meyers and Ichabod’s Cranium permanently enjoins them from violating Section 17(b) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and orders Meyers to pay a $100,000 civil penalty.

Named in this action: Medallion Financial Corp., Andrew Murstein, Lawrence Meyers, Ichabod's Cranium, Inc..

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