SEC Charges Hedge Fund Adviser Gregory Lemelson With Short-and-Distort Scheme
The Securities and Exchange Commission charged a hedge fund adviser and his investment advisory firm with illegally profiting from a scheme to drive down the price of San Diego-based Ligand Pharmaceuticals Inc., reaping more than $1.3 million of… Read More
United Technologies Charged With Violating FCPA
The Securities and Exchange Commission announced that Connecticut-based United Technologies Corporation will pay $13.9 million to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) by making illicit payments in its elevator and aircraft engine businesses…. Read More
SEC Charges Investment Adviser Tamara Steele With Defrauding Retail Advisory Clients
The Securities and Exchange Commission charged an Indianapolis-based investment advisory firm and its sole owner with selling approximately $13 million of high-risk securities to more than 120 advisory clients – many of whom are current or former teachers… Read More
SEC Uses Data Analysis to Detect Cherry-Picking By Broker Michael A. Bressman
The Securities and Exchange Commission charged a New Jersey-based broker with misusing his access to customers’ brokerage accounts to enrich himself and family members at the expense of his customers, many of whom had entrusted him with their… Read More
SEC Charges ICO Superstore TokenLot LLC and Owners Lenny Kugel & Eli L. Lewitt With Operating As Unregistered Broker-Dealers
The Securities and Exchange Commission announced that TokenLot LLC, a self-described “ICO Superstore,” and its owners will settle charges that they acted as unregistered broker-dealers. This is the SEC’s first case charging unregistered broker-dealers for selling digital tokens… Read More
SEC Charges Emil Botvinnik & Jovannie Aquino With Defrauding Customers
The Securities and Exchange Commission charged two brokers for recommending excessive levels of trading that were costly for retail customers but lucrative for the brokers. In separate complaints filed in federal court in Manhattan, the SEC alleges that… Read More
Whistleblower Receives Award of Approximately $1.5 Million
The Securities and Exchange Commission announced that a whistleblower has earned an award of more than $1.5 million. The whistleblower provided the SEC with vital information and ongoing assistance that proved important to the overall success of an… Read More
SEC Awards More Than $54 Million to Two Whistleblowers
The Securities and Exchange Commission is awarding $39 million to one whistleblower and $15 million to another whose critical information and continued assistance helped the agency bring an important enforcement action. The $39 million award is the second-largest… Read More
SEC Charges Jeffrey Goldman And Christopher Eikenberry With Fraud in Fake Trading Accounts Scheme
The Securities and Exchange Commission charged two Michigan men with fraud for their roles in a fake accounts scheme perpetrated by a phony day-trading firm, Nonko Trading. The SEC alleges that Jeffrey Goldman of West Bloomfield, Michigan, and Christopher… Read More
SEC Charges Real Estate Broker Joohyun Bahn With FCPA Violations
The Securities and Exchange Commission announced settled FCPA charges against New Jersey real estate broker Joohyun Bahn arising out of his attempt to bribe a foreign official while acting as a broker for Colliers International Group, Inc. According to… Read More
SEC Charges Microcap Fraudster Barry Honig and Others for Roles in Lucrative Market Manipulation Schemes
The Securities and Exchange Commission charged a group of 10 individuals and 10 associated entities for their participation in long-running fraudulent schemes that generated over $27 million from unlawful stock sales and caused significant harm to retail investors… Read More
SEC Charges Telecommunications Expense Management Company Tangoe Inc. With Accounting Fraud
The Securities and Exchange Commission charged telecommunications expense management company Tangoe Inc. for its use of fraudulent accounting practices that artificially boosted company revenues between 2013 and 2015. Four former members of the company’s senior management team were also charged… Read More
SEC Charges Cannabis Investment Fund Greenview Investment Partners L.P and Founder Michael E. Cone in Fraudulent Scheme
The Securities and Exchange Commission charged a Texas-based investment fund Greenview Investment Partners L.P. and its founder Michael E. Cone with defrauding investors with false promises of massive returns in cannabis-related businesses. The SEC also issued an alert to warn retail… Read More
SEC Charges Buffalo Advisory Firm and Principal With Fraud Relating to Association With Barred Adviser Walter Grenda
The Securities and Exchange Commission filed charges against a Buffalo, New York, investment advisory firm and its owner for misleading firm clients about its association with a barred investment adviser, who is also being charged for violating the… Read More
Sanofi Charged With FCPA Violations
The Securities and Exchange Commission announced that Paris-based pharmaceutical company Sanofi has agreed to pay more than $25 million to resolve charges that its Kazakhstan and the Middle East subsidiaries made corrupt payments to win business. According to the… Read More
SEC Charges Florida Cash Advance Company, Former CEO Carl Ruderman With Defrauding Retail Investors
The Securities and Exchange Commission announced charges against 1 Global Capital LLC and its former chief executive officer for allegedly defrauding at least 3,400 retail investors, more than one-third of whom invested their retirement funds. The Florida-based cash advance… Read More
SEC Charges NFL Player Mychal Kendricks and Former Investment Banker With Insider Trading
The Securities and Exchange Commission charged a professional football player and a former investment banker with insider trading in advance of corporate acquisitions facilitated through coded text messages and FaceTime conversations. The SEC alleges that after meeting at a… Read More
Press Release SEC Charges Moody’s Investors Service Inc. With Internal Controls Failures and Ratings Symbols Deficiencies
The Securities and Exchange Commission announced that Moody’s Investors Service Inc., one of the nation’s largest credit ratings agencies, has agreed to pay a total of $16.25 million in penalties to settle charges involving internal control failures and… Read More
Legg Mason Charged With Violating the FCPA
The Securities and Exchange Commission announced that Legg Mason Inc. will pay over $34 million to resolve an SEC charge that the company violated the Foreign Corrupt Practices Act (FCPA) in a scheme to bribe Libyan government officials. According… Read More
What is FINRA Rule 6490? Going Public Lawyers
Complying with Rule 6490’s requirements may entail an unanticipated legal and compliance cost for issuers and their securities attorneys, who may be unfamiliar with FINRA’s authority under 10b-17. Additionally, many OTC Markets issuers are not prepared for the Depository Trust Company (“DTC”) review that may be prompted by the issuer’s corporate action notification.
Transamerica Entities to Pay $97 Million to Investors Relating to Errors in Quantitative Investment Models
The Securities and Exchange Commission today announced charges against four Transamerica entities for misconduct involving faulty investment models and ordered the entities to refund $97 million to misled retail investors. According to the SEC’s order, investors put billions of… Read More
Fee Rate Advisory #1 for Fiscal Year 2019
The Securities and Exchange Commission announced that in fiscal year 2019 the fees that public companies and other issuers pay to register their securities with the Commission will be set at $121.20 per million dollars. The securities laws require… Read More
SEC Bars David T. Laurance Perpetrator of Initial Coin Offering Fraud
The Securities and Exchange Commission obtained permanent officer-and-director and penny stock bars against the founder of a company who perpetrated a fraudulent initial coin offering (ICO) to fund oil exploration and drilling in California. According to the SEC’s… Read More
SEC Charges Oil Company CEO John Schiller With Hiding His Personal Loans
On July 16, 2018 The Securities and Exchange Commission charged the former CEO of Energy XXI Ltd. John Schiller with hiding more than $10 million in personal loans that he obtained from company vendors and a candidate for… Read More
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
The Securities and Exchange Commission announced on Aug. 6, 2018 that it has updated its list of unregistered firms that use misleading information to primarily solicit non-U.S. investors, adding 16 soliciting entities, four impersonators of genuine firms, and nine… Read More
Deutsche Bank to Pay Nearly $75 Million for Improper Handling of ADRs
The Securities and Exchange Commission announced on July 20, 2018 that two U.S.-based subsidiaries of Deutsche Bank AG will pay nearly $75 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs). The case stems from a continuing… Read More
SEC Charges Unregistered Brokers Who Sold Woodbridge Securities to Main Street Investors
The Securities and Exchange Commission today charged five individuals and four companies for unlawfully selling securities of Woodbridge Group of Companies LLC to retail investors. Woodbridge collapsed into bankruptcy in December 2017 and the SEC previously charged the company,… Read More
SEC Charges Mizuho Securities for Failure to Safeguard Customer Information
On July 23, 2018 The Securities and Exchange Commission charged Mizuho Securities USA LLC for its failure to safeguard information pertaining to stock buybacks by its issuer customers. Mizuho failed to maintain and enforce policies and procedures aimed… Read More
Citigroup to Pay More Than $10 Million for Books and Records Violations and Inadequate Controls
The Securities and Exchange Commission announced that Citigroup has agreed to pay $10.5 million in penalties to settle two enforcement actions involving its books and records, internal accounting controls, and trader supervision. The charges stem from $81 million… Read More
The Distinction Between Equity Crowdfunding and Rule 506 Accredited Crowdfunding
The JOBS Act’s new rules permitting general solicitation and advertising in Rule 506 private placements became effective on September 23, and there is still some confusion about the difference between equity crowdfunding and general solicitation and advertising in… Read More
