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Jon G. Fullenkamp and Scott R. Sand

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26517 / March 31, 2026

Securities and Exchange Commission v. Jon Fullenkamp, et al., No. 26-cv-03407 (D.N.J. filed March 31, 2026)

SEC Charges Two Individuals in Alleged Fraudulent Scheme to Misappropriate Millions of Dollars from Two Penny Stock Issuers

On March 31, 2026, the Securities and Exchange Commission charged Scott Sand and his business associate, Jon Fullenkamp, with allegedly perpetrating a fraud scheme to misappropriate millions of dollars from two publicly traded, penny stock issuers (“the issuers”) for which they effectively served as senior management.

The SEC’s complaint alleges that Sand and Fullenkamp, although not formally identified as part of the issuers’ management, exercised extensive control over the issuers, including managing regulatory compliance, financial reporting, and investor relations.  According to the complaint, from at least October 2020 through 2023, Sand and Fullenkamp enriched themselves by causing the issuers to enter into sham agreements with an entity secretly controlled by Fullenkamp, and then to issue hundreds of thousands of preferred shares to the Fullenkamp-controlled company pursuant to the sham agreements.  As alleged, Sand and Fullenkamp then sold some of the preferred shares to third parties, realizing $2.6 million in proceeds, which they split between them.

The SEC’s complaint, filed in the U.S. District Court for the District of New Jersey, charges Sand and Fullenkamp with violating Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder.  The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains plus prejudgment interest, and civil penalties against Sand and Fullenkamp, and a conduct-based injunction against Sand.  As to Fullenkamp, the complaint also seeks a penny stock bar, officer and director bar, and an order requiring surrender for cancellation of all of the fraudulently acquired shares of preferred and common stock.

Fullenkamp, without denying the SEC’s allegations, consented to the entry of a judgment, subject to court approval, permanently enjoining him from future violations of the charged provisions of federal securities law, imposing permanent officer and director and penny stock bars, ordering him to surrender for cancellation all fraudulently acquired shares, and ordering him to pay disgorgement, prejudgment interest, and a civil penalty in amounts to be determined by the Court upon motion by the SEC.

Fullenkamp has also been charged in a parallel criminal action by the United States Attorney’s Office for the District of New Jersey for related conduct.

The SEC’s investigation was conducted by Cecilia Connor, Matthew Homberger and David Medway, and supervised by Kingdon Kase and Scott A. Thompson, all of the SEC’s Philadelphia Regional Office. The litigation will be led by John Donnelly and supervised by Gregory R. Bockin, also of the Philadelphia Regional Office.

Resources

• SEC Complaint