Former NanoTech Director David Foley Sentenced to 6 Years in NanoTech Gaming 'Pump and Dump'; Promoter Bennie Blankenship Awaits Sentencing

Case from 2021–2026 (U.S. Attorney's Office release: Jan. 15, 2021; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

David Foley, a former director of San Jose, California-based Nanotech Entertainment Inc., was sentenced on Aug. 19, 2026, to 72 months in federal prison for a "pump and dump" scheme in shares of NanoTech Gaming Inc., according to court records in the Northern District of Illinois [2] [3]. A jury convicted him in November 2024 on two securities-fraud counts and acquitted him of eight wire-fraud counts [4]. Co-defendant Bennie Blankenship, an investment manager, has pleaded guilty and has not yet been sentenced.

How the scheme worked

According to the 2021 indictment, as described by prosecutors [1]:

1. The stock: NanoTech Gaming Inc. (NTGL), a Las Vegas business, had formerly been a division of Nanotech Entertainment (NTEK), where Foley was a director.
2. Freeing up shares: Foley acquired NTGL shares and fraudulently caused them to be unrestricted, so they could be sold publicly.
3. The pump: Blankenship promoted the shares by exaggerating their prospects, artificially inflating the price.
4. The dump: Foley and others sold the inflated stock to the investing public.

The indictment said the scheme ran from 2013 to 2016, and that for part of that time Foley was incarcerated in California on an unrelated conviction.

The people charged

David Foley, of Los Gatos, Calif. (55 when indicted)

• Indictment (Jan. 11, 2021): charged with wire fraud and securities fraud in a 10-count indictment [1].
• Verdict (Nov. 4, 2024): convicted on two counts of securities fraud and acquitted on eight wire-fraud counts, according to a federal judge's order in the SEC's parallel civil case [4].
• Sentence (Aug. 19, 2026): 72 months on Count 9 and 60 months on Count 10, to run concurrently, imposed by U.S. District Judge Steven C. Seeger. He was ordered to self-surrender by Oct. 31, 2026 [2] [3].
• Restitution: The judge declined to order restitution in deference to the pending SEC civil action, writing that the decision was not an indication that restitution was inappropriate [2].
• Civil case: The SEC's suit against Foley (No. 1:19-cv-01711) remains pending as of the latest records we found.

Bennie Blankenship, of New Carlisle, Ohio (49 when indicted)

• Charges: wire fraud and securities fraud [1].
• Plea: pleaded guilty in April 2022 under a plea agreement. Court records show his sentencing has been continued several times; we found no sentence as of Oct. 16, 2026.

The investigation was conducted by FBI Chicago.

Note on the judgment form: Foley's judgment includes a checkbox stating he was "found guilty on counts 1-8," but the same page lists the offenses of conviction as Counts 9 and 10 (securities fraud), which matches the sentence and the court's earlier description of the verdict [3] [4].

Red flags

• Hype for a thinly traded penny stock from promoters, newsletters or social media.
• Sudden price and volume spikes without real business news.
• Insiders or affiliates unloading shares while the stock is being promoted.

What to do if you're targeted

1. Check a company's SEC filings on EDGAR and look for trading suspensions.
2. Be skeptical of paid promotions, and look for promotion disclosures.
3. Report suspected manipulation to the SEC at sec.gov/tcr.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
David Foley, Los Gatos, Calif.	N.D. Ill. (Judge Seeger), No. 1:21-cr-00019	Convicted Nov. 4, 2024, on two securities-fraud counts, acquitted on eight wire-fraud counts; sentenced Aug. 19, 2026, to 72 months; to self-surrender by Oct. 31, 2026	[1]-[4]
Bennie Blankenship, New Carlisle, Ohio	N.D. Ill. (Judge Seeger), No. 1:21-cr-00019	Pleaded guilty April 2022; sentence not found in public sources as of Oct. 16, 2026	[1], [4]

Foley may appeal. We have not found a notice of appeal.

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Silicon Valley Streaming Service Executive Indicted in Alleged 'Pump and Dump' Stock Fraud Scheme," Jan. 15, 2021. https://www.justice.gov/usao-ndil/pr/silicon-valley-streaming-service-executive-indicted-alleged-pump-and-dump-stock-fraud
2. U.S. District Court, N.D. Ill., United States v. Foley, No. 1:21-cr-00019, Doc. 312 (minute entry on sentencing), Aug. 19, 2026 (via CourtListener RECAP). https://storage.courtlistener.com/recap/gov.uscourts.ilnd.395050/gov.uscourts.ilnd.395050.312.0.pdf
3. U.S. District Court, N.D. Ill., United States v. Foley, No. 1:21-cr-00019, Doc. 314 (judgment), filed Aug. 28, 2026 (via CourtListener RECAP). https://storage.courtlistener.com/recap/gov.uscourts.ilnd.395050/gov.uscourts.ilnd.395050.314.0.pdf
4. U.S. District Court, N.D. Ill., SEC v. Foley, No. 1:19-cv-01711, Doc. 155 (order on motion to stay), May 8, 2025 (via CourtListener RECAP). https://storage.courtlistener.com/recap/gov.uscourts.ilnd.362486/gov.uscourts.ilnd.362486.155.0.pdf

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