Three Israeli residents accused of operating a shell factory, along with an attorney and accountant accused of aiding and abetting their actions, have agreed to a settlement with the U.S. Securities and Exchange Commission, federal regulators announced Friday.

Sharone Perlstein, Aric Swartz and Hadas Yaron are accused of creating at least 15 shell companies that were set up with phony business plans and management. Some of the companies issued initial public offerings. While making it appear otherwise, in reality the three remained in control of the companies’ share, selling some of them for a profit of almost $2 million, according to filings in the U.S. District Court for the Eastern District of New York.

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