Litigation Releases (Michael J. Forster)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26586 / July 15, 2026

Securities and Exchange Commission v. Forster, No. 22-civ-627 (S.D. Cal. filed May 4, 2022)

SEC Obtains Final Consent Judgment as to Michael J. Forster in Connection with Alleged Pump-and-Dump Scheme

On July 13, 2026, the United States District Court for the Southern District of California entered a final consent judgment as to Michael J. Forster in connection with his role in an alleged pump-and-dump scheme.

The SEC filed its complaint against Forsteron May 4, 2022. The SEC's complaint alleged that between February and August 2012, Forster orchestrated a pump-and-dump scheme in the stock of Cuba Beverage Company. In connection with the scheme, Forster allegedly controlled the issuer, engaged in manipulative trading, and promoted the stock to retail investors. When investors began buying the stock, Forster would allegedly sell his shares, which netted him $144,320 in that period.

The SEC charged Forster with violations of Sections 9(a)(2) and 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder as well as Section 17(a) of the Securities Act of 1933. The Court entered a partial consent judgment with Forster on May 20, 2022. This judgment permanently enjoined him from further violations of the charged provisions of the federal securities laws and imposed a penny stock bar.

The final consent judgment issued on July 13, 2026, orders Forster to pay disgorgement of $144,320 and prejudgment interest thereon of $12,040, payment of which is deemed satisfied by the order of forfeiture entered against him in the parallel criminal action, United States v. Forster, 20 cr. 325 (S.D. Cal.).

The SEC's litigation was led by Christopher J. Dunnigan and Lindsay S. Moilanen, and was supervised by Christopher Colorado and Sheldon L. Pollock. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of California and the FBI.