On June 14, 2007 the SEC filed suit against Michael Paloma's associates, Arizona attorney David B. Stocker and Texas attorney Phillip W. Offill, Jr. for their role in an illegal "pump and dump" scheme. The Commission alleged that attorneys Stocker and Offill assisted Michigan-based AVL Global, Inc., in a scheme to dump millions of shares of AVL Global stock into the marketplace without any public disclosure of the company's failing operations.
In the same action, the Commission also charged Peter W. Fisher and his son, N. Tyler Fisher, the principals behind AVL Global, for their roles in the scheme, where a handwritten fax was sent to more than one million recipients across the country. This fax was designed to mislead investors into believing they had inadvertently received a confidential stock tip faxed from a stockbroker to his client, containing an urgent message from a financial planner intended only for his client, "Dr. Mitchel". The fax was urging the purchase of a stock that was about to triple in price. In fact, neither the financial planner nor "Dr. Mitchel" ever existed. The fax was sent to more than one million recipients across the country by stock promoters who made over half a million dollars unloading their shares on duped investors. David Stocker and Bryan Kos were also involved with Michael Paloma in various penny stock scams.