`
`RICHARD R. BEST
`REGIONAL DIRECTOR
`Sanjay Wadhwa
`Sheldon L. Pollock
`John O. Enright
`Mark R. Sylvester
`Lindsay S. Moilanen
`Attorneys for Plaintiff
`SECURITIES AND EXCHANGE COMMISSION
`New York Regional Office
`Brookfield Place
`200 Vesey Street, Suite 400
`New York, New York 10281-1022
`(212) 336-0159 (Sylvester)
`sylvesterm@sec.gov
`
`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`
`SECURITIES AND EXCHANGE
`COMMISSION,
`
` Plaintiff,
`
` -against-
`
`ERIC J. WATSON,
`OLIVER-BARRET LINDSAY, and
`GANNON GIGUIERE,
`
` Defendants.
`
`
`
`
`
`
`
`
`
`
`COMPLAINT
`
`21 Civ. _____ ( )
`
`
`
`
`
`
`JURY TRIAL DEMANDED
`
`
`
`
`Plaintiff Securities and Exchange Commission (“Commission”), for its Complaint against
`
`Defendants Eric J. Watson (“Watson”), Oliver-Barret Lindsay (“Lindsay”), and Gannon Giguiere
`
`(“Giguiere”) (collectively, “Defendants”), alleges as follows:
`
`SUMMARY
`
`1.
`
`This matter involves an insider trading scheme conducted in late 2017, in which
`
`Watson, a corporate insider and the controlling shareholder of Long Island Iced Tea Corp. (now
`
`known as Long Blockchain Corp.) (hereinafter, “LTEA”), tipped his friend, business associate, and
`
`
`
`Case 1:21-cv-05923-ALC Document 1 Filed 07/09/21 Page 2 of 19
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`broker, Lindsay, with material nonpublic information regarding LTEA’s impending announcement
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`that it was significantly changing its business from soft drink manufacture to blockchain technology
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`(the “Announcement”). At the time, LTEA’s shares were publicly traded on NASDAQ.
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`2.
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`On December 20, 2017, Lindsay conveyed this material nonpublic information
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`regarding the impending Announcement to Giguiere, his friend and co-conspirator in prior market
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`manipulation schemes. Within hours of receiving this confidential information, Giguiere purchased
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`35,000 LTEA shares.
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`3.
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`On the following day, December 21, 2017, LTEA issued the Announcement, stating
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`that LTEA was “shifting its primary corporate focus towards the exploration of and investment in
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`opportunities that leverage the benefits of blockchain technology” compared to “the ready-to-drink
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`segment of the beverage industry,” as well as changing its name to “Long Blockchain Corp.” in
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`place of “Long Island Iced Tea Corp.”
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`4.
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`As a result of the Announcement, the company’s stock price and trading volume
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`skyrocketed, with the intraday stock price spiking 388%, on increased trading volume of 1,000%,
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`before closing at $6.91, an increase of more than 180% from the prior day’s closing price.
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`5.
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`In less than two hours following the Announcement, Giguiere sold the 35,000 LTEA
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`shares he had purchased the day before, realizing $162,500 in illicit profits.
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`VIOLATIONS
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`6.
`
`By virtue of the foregoing conduct and as alleged further herein, Defendants
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`Watson, Lindsay, and Giguiere have violated Section 10(b) of the Securities Exchange Act of 1934
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`(“Exchange Act”) [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5].
`
`7.
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`Unless Defendants are restrained and enjoined, they will engage in the acts, practices,
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`transactions, and courses of business set forth in this Complaint or in acts, practices, transactions,
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`and courses of business of similar type and object.
`
`
`
`2
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`
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