Jillian Sidoti, an attorney from California, was arrested and charged with participating in a fraudulent operation that involved the sale of securities that were not registered. She allegedly created and signed documents that contained materially misleading information about the operations and control of Blake Insomnia Therapeutics, a penny stock business, while she was acting as the attorney for the company. It was Sidoti who made the arrangements for practically all of Blake’s shares to be sold to several nominee shareholders. However, he managed to disguise the fact that the purchasers were essentially a single control group. In addition, she produced opinion letters that contained fraudulent statements to convince Blake’s transfer agent and the Depository Trust Corporation to accept Blake’s shares. This allowed her to circumvent the legal restrictions that were placed on the sales of stock by affiliates. Because of this, the control group was able to sell more than five million Blake shares to the general public stock market. A final judgment was rendered against Sidoti as a result of her activities, which included a permanent injunction against breaking securities laws, a five-year penny stock prohibition, and a civil penalty.