COVID Hype: $10M Order LIE Sparks 197% Stock Surge! Insider Cashing Out!

SEC v. Christopher B. Ferguson, Brian P. McFadden — U.S. Securities and Exchange Commission Litigation Release No. 26487, dated February 23, 2026.

The SEC charged Christopher B. Ferguson, former CEO of Edison Nation, Inc., and Brian P. McFadden, a consultant, for disseminating a false press release. They claimed over $10 million in purchase orders for PPE, when the actual amount was only $2.5 million. This inflated the stock price, allowing McFadden to profit from selling shares.

In Plain English

Imagine a company announced it got a huge order for masks, saying it was over $10 million. This made people excited and the company's stock price shot up! But, in reality, the order was much smaller, only about $2.5 million, and the deal was falling apart. Because of the fake good news, one of the people involved was able to sell their stock for a lot of money, making a profit based on a lie.

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. Negotiating a Large Deal Christopher B. Ferguson, CEO of Edison Nation, Inc., and Brian P. McFadden, a consultant, were negotiating to buy $9 million worth of hand sanitizer from a distribution company.
2. Deal Falls Through Two days before they planned to announce their success, the distribution company informed Ferguson and McFadden that they could not proceed with the $9 million transaction.
3. Issuing a False Press Release Despite the deal falling apart, Edison Nation, directed by Ferguson and McFadden, issued a press release on April 16, 2020, announcing they had 'Secures Over $10 Million in Purchase Orders for Personal Protective Equipment in First Week Since Launch'.
4. Misrepresenting Order Size The press release was false because Edison Nation had not secured over $10 million in purchase orders. In reality, without the $9 million deal, they only had approximately $2.54 million in purchase orders at that time.
5. Stock Price Skyrockets Following the misleading press release, Edison Nation's share price surged from $1.67 at the previous day's close to $4.96 by market open on April 16, 2020, an increase of 197%.
6. Consultant Sells Shares After the announcement artificially inflated the stock price, Brian P. McFadden sold 33,290 shares of Edison Nation stock.
7. Illicit Profits Secured By trading on the artificially inflated stock price, McFadden obtained illicit profits of approximately $75,208.

The Enforcement Action

On February 23, 2026, the SEC filed a settled action against Christopher B. Ferguson, former CEO of Edison Nation, Inc., and Brian P. McFadden, a consultant. Ferguson was charged with violating Section 17(a)(3) of the Securities Act of 1933, and McFadden with violating Sections 17(a)(2) and (3) of the Securities Act. Without admitting or denying the allegations, Ferguson and McFadden consented to final judgments permanently enjoining them from violating the charged provisions, imposing a $50,000 civil penalty on each, and prohibiting them from serving as officers or directors of public companies for five years. McFadden was also ordered to pay $75,208 in disgorgement plus $28,209 in prejudgment interest.

Named in this action: Christopher B. Ferguson, Brian P. McFadden.

Original SEC litigation release ↗ · Browse all cases