According to the SEC: "Pirgousis and Dolney orchestrated a massive broker bribery scheme involving the stock of nine public companies, including Syndicated. Through the use of domestic and offshore nominee brokerage accounts, Pirgousis and Dolney sold stock surreptitiously into the public market for personal gain and paid undisclosed kickbacks (often in the form of stock and cash) to boiler rooms responsible for selling the stock to the public. To conceal their control over large blocks of Syndicated stock, Pirgousis and Dolney also filed false and misleading periodic reports with the Commission on Syndicated's behalf and failed to file disclosures with the Commission identifying the stock they beneficially owned."

On July 12, 2013 the SEC published a litigation release regarding this matter. According to the SEC, Syndicated Food Service International, Inc. consented to enter a final judgment enjoining it from future violations of Section 17(a) of the Securities Act, Sections 10(b) and 13(a) of the Exchange Act, and Rules 10b-5, 12b-20, 13a-1 and 13a-13.