SEC Drops Case Against Cole! No Explanation Given!

U.S. Securities and Exchange Commission Litigation Release No. 26547, dated May 4, 2026.

The Securities and Exchange Commission (SEC) voluntarily dismissed its civil enforcement action against Neil R. Cole on May 4, 2026. The dismissal was filed in the U.S. District Court for the Southern District of New York. This action does not reflect the SEC's position on any other cases.

In Plain English

Imagine the SEC was trying to sue someone named Neil. On May 4, 2026, the SEC decided to stop the lawsuit against Neil. They filed a paper with the court saying they are dropping the case. This doesn't mean the SEC thinks Neil did nothing wrong in general, just that they are not pursuing this specific lawsuit.

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. SEC Initiates Action The Securities and Exchange Commission (SEC) filed a civil enforcement action against Neil R. Cole and Seth Horowitz. This action was initiated in the U.S. District Court for the Southern District of New York on December 5, 2019, under case number 1:19-cv-11148.
2. SEC Files Notice of Dismissal On May 4, 2026, the SEC filed a notice of voluntary dismissal concerning its claims against Neil R. Cole. This filing indicates the SEC's decision to cease pursuing the enforcement action against Cole.
3. Dismissal Without Court Order According to the notice, the SEC could dismiss the action against Cole without a court order because the defendant had not yet served an answer or a motion for summary judgment. This procedure is permitted under Rule 41(a)(1)(A)(i) of the Federal Rules of Civil Procedure.
4. Discretionary Decision The SEC stated that its decision to seek dismissal was an exercise of its discretion. The Commission also clarified that this dismissal does not necessarily reflect its position on any other case.
5. Case Continues Against Other Defendants While the claims against Neil R. Cole were dismissed, the case caption indicates that Seth Horowitz remains a defendant in the action. The notice of dismissal specifically addresses only the claims against Neil R. Cole.

The Enforcement Action

On May 4, 2026, the U.S. Securities and Exchange Commission filed a notice of voluntary dismissal in the civil enforcement action against Neil R. Cole, No. 1:19-cv-11148 (S.D.N.Y. filed Dec. 5, 2019). The dismissal was made without a court order as the defendant had not yet filed an answer or motion for summary judgment, pursuant to Fed. R. Civ. P. Rule 41(a)(1)(A)(i). The SEC stated this decision was an exercise of its discretion and does not reflect its position on other cases.

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