SEC v. David Reichman et al. — U.S. Securities and Exchange Commission Litigation Release No. 26664, dated October 2, 2026.
Named in the SEC’s action
The SEC charged David Reichman, former CEO of Global Tech Industries Group, Inc., for orchestrating a multi-year scheme to defraud investors. He allegedly issued millions of shares to family and associates, falsely claiming they were for services rendered, thereby enriching himself and his daughter, Justine Reichman. The scheme diluted existing shareholders' value and involved concealed stock sales and misleading financial filings.
In Plain English
Imagine a CEO who secretly gave away millions of company shares to his friends and family, pretending they had done important work for the company. He then lied on official paperwork, saying these shares were earned, not just handed out. This made the company's stock less valuable for everyone else who had bought it fairly. He also hid his own stock sales and his daughter's large ownership stake.
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
- Issuing Shares for Fake Services From 2016 to June 2024, David Reichman, CEO of Global Tech, caused the company to issue tens of millions of shares to his family, friends, and associates. He falsely represented in company filings that these shares were issued in exchange for 'services' that the recipients had not actually provided.
- Concealing Daughter's Stake Reichman actively concealed that his daughter, Justine Reichman, was a significant shareholder. In an August 2021 Form S-1 filing for a $3.3 million offering, he fraudulently failed to disclose that Justine Reichman and an affiliated company collectively held 6.9% of Global Tech's stock.
- Hiding Related-Person Transactions Reichman failed to disclose share issuances to his daughter and her affiliated company as related-person transactions. He also directed others not to disclose that Justine Reichman was a beneficial owner of more than 5% of Global Tech stock.
- Misrepresenting Employee Trust Shares In 2022, Reichman authorized the sale of 10 million shares from a trust established for Global Tech employees. Despite the sale, he continued to state in SEC filings that these shares remained in the trust and had not been 'committed for release'.
- Profiting from Dilution and Sales The fraudulent share issuances diluted existing shareholders' value. When Global Tech stock rose in 2021-2022, Justine Reichman, DOT8, Inc., and Individual E sold their fraudulently issued shares, generating approximately $8 million for Justine and $1 million for David Reichman.
- Using Proceeds for Personal Gain David Reichman also received approximately $2.5 million from the fraudulent August 2021 offering. He and Justine Reichman subsequently used about $2.5 million of these proceeds to purchase Justine's home, held by her trust.
The Enforcement Action
SEC charges David Reichman, former Chairman and CEO of Global Tech Industries Group, Inc., for orchestrating a multi-year scheme to defraud investors. The complaint alleges Reichman caused Global Tech to issue tens of millions of shares to family, friends, and associates under the guise of services rendered, thereby enriching himself and his daughter, Justine Reichman. The SEC seeks permanent injunctive relief, civil penalties, disgorgement of ill-gotten gains with prejudgment interest, and an officer-and-director bar against David Reichman. Disgorgement with prejudgment interest is also sought against relief defendants Justine Reichman and the Justine Reichman 2021 Trust.