On October 2, 2026, the Securities and Exchange Commission filed charges against David Reichman, the former Chairman and CEO of Global Tech Industries Group, Inc. (GTII), for allegedly orchestrating a multi-year scheme to defraud Global Tech’s investors.
The complaint also names David Reichman’s daughter, Justine Reichman, both in her individual capacity and as trustee of Justine Reichman 2021 Trust, as relief defendants.
The SEC’s complaint alleges that David Reichman caused Global Tech to issue tens of millions of shares to his family members, friends, and associates in a fraudulent scheme to enrich himself and his daughter, Justine Reichman.
According to the SEC Complaint, from at least 2016 to December 2019, Reichman caused Global Tech to issue more than 32 million shares to his daughter, Justine Reichman, ex-wife, girlfriend, and an affiliated entity, among others, by falsely telling Global Tech’s investors, and in some cases, its Board of Directors and transfer agents, that these issuances were for services rendered to Global Tech.
As alleged, David Reichman signed annual filings Global Tech made with the SEC that represented that these share issuances were in exchange “for services,” when in fact, Reichman knew that the share recipients had not provided any services to the company. According to the complaint, Reichman furthered the scheme by concealing that Justine Reichman was a significant shareholder of Global Tech stock. Reichman also allegedly failed to timely file required reports publicly disclosing his sales of Global Tech stock.
According to details in the SEC Complaint, during 2021 and 2022, recipients monetized some of those improperly issued shares. The SEC alleges that stock sales by the share recipients through the scheme generated approximately $8 million for Justine Reichman and $1 million for David Reichman. Reichman also allegedly personally received another $2.5 million from Global Tech’s August 2021 offering.
At the same time, however, Global Tech publicly attributed pressure on its stock to suspected short selling and market manipulation. In June 2022, GTII announced that it had observed what it described as “apparent consistent naked short selling” of its shares and said it had asked FINRA to investigate. The Company subsequently retained outside counsel and ShareIntel to investigate what it believed might be a market manipulation scheme involving naked short selling. In March 2023, GTII filed a lawsuit against several broker-dealers, alleging that they had engaged in “spoofing” that artificially depressed the price of GTII shares. GTII’s complaint alleged that the spoofing occurred from March 25, 2021 through October 31, 2022—the same general period in which, according to the SEC’s later complaint, Reichman’s daughter and other recipients were monetizing shares that had allegedly been fraudulently issued to them.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges David Reichman with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and the securities reporting requirements of Section 16(a) of the Exchange Act and Rule 16a-3 thereunder, as well as with aiding and abetting Global Tech’s violation of Section 13(a) of the Exchange Act and Rule 13a-1 thereunder. The complaint seeks permanent injunctive relief, civil penalties, disgorgement of ill-gotten gains with prejudgment interest, and an officer-and-director bar against David Reichman. The complaint also seeks disgorgement with prejudgment interest against the relief defendants.
The SEC’s investigation was conducted by Yitzchok Klug, Alexander M. Levine, and Christopher Mele, and was supervised by Alison Conn and Sheldon L. Pollock, all of the SEC’s New York Regional Office. The litigation will be led by Travis Hill, Mr. Klug, and Mr. Levine, under the supervision of Alexander Vasilescu.
This article is provided for informational purposes only and does not constitute legal advice.
To speak with a Securities Attorney, please contact Brenda Hamilton at 200 E Palmetto Rd, Suite 103, Boca Raton, Florida, (561) 416-8956, or by email at [email protected].
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