SEC Charges Former Global Tech CEO Reichman With Secretly Issuing Stock to Family

The SEC charged David Reichman, former CEO of Global Tech Industries Group Inc., with secretly issuing millions of shares to family members and concealing the transactions, according to an Oct. 2 complaint. From March 2016 to December 2019, Reichman allegedly issued more than 32 million shares to his daughter, ex-wife, girlfriend and an affiliated entity, falsely claiming they provided services to Global Tech, whose stock traded on OTC Link ATS. He also allegedly issued 940,000 shares to "Individual E," who sold them and transferred 90% of proceeds — about $1.4 million — to Reichman. The SEC said the scheme generated roughly $1 million for Reichman and $8 million for his daughter when the stock surged in 2021 and 2022. The agency said the dilution harmed existing shareholders. Global Tech reported little revenue and no significant operations from 2016 until June 2024. A Nevada state court appointed a receiver in September 2024. The SEC seeks injunctive relief, civil penalties, disgorgement and an officer-and-director bar. Reichman declined comment.