On July 19, 2017, former corporate counsel to Entertainment Art, Inc. (“EA”) was criminally charged with conspiracy to unlawfully sell registered securities and was barred by the SEC from appearing before the agency. See In the Matter of Lubin, Exchange Act Release No. 81,172, File No. 3-18070 (July 19, 2017). The former counsel was a large shareholder in EA, and arranged the sale of all of EA’s stock to an acquaintance. As part of that transfer, stock that used to trade freely became subject to a requirement to register the stock prior to resale. But after the transfer, the former counsel made several SEC filings that falsely suggested his acquaintance had purchased only a portion of the company’s shares, and that the stock could still be traded freely. Later, others did re-sell that stock to the public in contravention of the SEC’s registration requirement, causing the SEC to freeze $34 million in sale assets. If convicted, the former counsel faces up to five years in prison and a $250,000 fine.