General Cable Corporation Settles FCPA Charges – Posted by Brenda Hamilton
Posted by Brenda Hamilton One December 29, 2016, the Securities and Exchange Commission announced that Kentucky-based General Cable Corporation agreed to pay more than $75 million to resolve parallel SEC and U.S. Department of Justice investigations related to its violations… Read More
Blackbird Capital Partners LLC and Owners Charged in Ponzi Scheme
On November 28, 2016, the Securities and Exchange Commission (“SEC”) obtained a temporary restraining order and an emergency asset freeze in a $3 million offering fraud and Ponzi scheme orchestrated by Andrew Kelley, Paul Shumway and their company… Read More
Matthew and William Griffin Charged with Fraud
On November 23, 2016, the Securities and Exchange Commission (“SEC”) filed a civil action charging brothers Matthew Griffin and William Griffin with fraudulently offering interests in two Texas partnerships. The SEC alleges that, between November 2013 and July… Read More
CEO of Warrior Girl Corp. Jason Kumpf Charged with Fraud
On November 21, 2016, the Securities and Exchange Commission (“SEC”) charged Jason William Kumpf, the former CEO and president of microcap issuer Warrior Girl Corp. and a resident of San Francisco, California, with fraud based on his involvement in… Read More
FBI Informant Guy Gentile Pushes Back
In September, we wrote about Guy Gentile, the owner of two successful stock brokerages, and his troubles with the U.S. Department of Justice (“DOJ”). According to the DOJ, back in 2007-2008, Guy Gentile had become involved in the… Read More
William Allen and Susan Daub Plead Guilty to Wire Fraud
On November 14, 2016 and November 21, 2016, William Allen and Susan Daub pled guilty in federal court to criminal wire fraud and other charges in connection with an investment scheme involving fraudulent loans to professional athletes. The… Read More
Stanley Fortenberry Pleads Guilty to $900,000 Fraud
On November 18, 2016, Stanley Jonathan Fortenberry (a/k/a S.J., John, or Johnny Fortenberry) of San Angelo, Texas, pleaded guilty to an indictment charging him with obstruction of justice and other charges in connection with two investment companies he ran that… Read More
Former KIT Digital Inc. President Gavin Campion Charged with Securities Fraud
The Securities and Exchange Commission (“SEC”) charged Gavin Campion, the former president of KIT Digital Inc., with securities fraud. The SEC’s complaint, filed in federal court in New York on November 15, alleges that over a one-year period… Read More
Francisco Martin Charged with Defrauding Investors in Native American Tribal Bonds
On November 14, 2016, the Securities and Exchange Commission (“SEC”) added Francisco Martin of Woodland Hills, California to a civil injunctive action currently pending in the U.S. District Court for the Southern District of New York, charging him with defrauding… Read More
Government Official Gordon Johnson Reaches Settlement for Insider Trading
On November 14, 2016 the Securities and Exchange Commission (“SEC”) announced that it entered into a settlement agreement with Gordon Johnston, a former official at the U.S. Food and Drug Administration’s Office of Generic Drugs (OGD) who allegedly participated… Read More
What Is An Unregistered Broker? – Going Public Lawyers
The Securities and Exchange Commission (the “SEC”) is pursuing unregistered broker or broker dealer activity which runs rampant in the penny stock markets particulary in transactions involving reverse merger companies. Often these unregistered broker-dealers claim to be exempt… Read More
President of TelexFree James Merrill Pleads Guilty to Running Pyramid Scheme
On October 24, 2016, James M. Merrill, of Ashland, Massachusetts, the former president of TelexFree, Inc. and TelexFree, LLC, pled guilty to criminal charges related to his operating a pyramid scheme through TelexFree. On May 9, 2014, Merrill… Read More
Attorney Adam Tracy & the Nefarious World of Custodianship Shells
The Securities and Exchange Commission (“SEC”) says it doesn’t like over-the-counter shell companies, and would like to see them gone from the marketplace. To that end, its Enforcement Division cooked up an initiative it called “Operation Shell-Expel”. It… Read More
Marc Broidy Charged with Defrauding Investors in 3 Separate Schemes
On October 27, 2016 the Securities and Exchange Commission (“SEC”) charged a Los-Angeles based investment advisory firm and its owner, Marc Broidy with fraudulently overbilling clients and stealing assets from their trusts to pay such personal expenses as his… Read More
Southlake Resources Group and Owner Cody Winters Charged with Fraud
Texas company Southlake Resources Group, LLC and its president Cody Winters have agreed to pay over $5.4 million to settle charges by the Securities and Exchange Commission (“SEC”) that they orchestrated an oil-and-gas fraud. The SEC also charged the… Read More
Brazilian Airplane Manufacturer Embraer S.A. Charged with FCPA Violations
The Securities and Exchange Commission (“SEC”) announced a global settlement along with the U.S. Department of Justice and Brazilian authorities that requires aircraft manufacturer Embraer S.A. to pay more than $205 million to resolve alleged violations of the Foreign… Read More
Executive of Pinnacle Financial Partners James Cope Charged with Insider Trading
On October 21, 2016 the Securities and Exchange Commission (“SEC”) charged a James Cope, a Tennessee lawyer who served on the executive committee of the board of directors of Nashville-based Pinnacle Financial Partners with insider trading based on nonpublic… Read More
Christopher Salis and Douglas and Edward Miller Charged with Insider Trading
A federal grand jury in the Northern District of Indiana has indicted Christopher Salis, Douglas Miller, and Edward Miller on charges relating to insider trading, money laundering, and structuring currency transactions. The 17-count indictment also charges Douglas Miller… Read More
SEC Issues Form S-3 Registration and Annual Report C&DIs
On November 2, 2016, the Securities and Exchange Commission (“SEC”) Division of Corporation Finance released two new compliance and disclosure interpretations (“C&DIs”) addressing eligibility to use Form S-3 registration statements and submission of annual reports to the SEC…. Read More
Lime Energy Co. and Four Execs Charged with Accounting Fraud
On October 17, 2016 the Securities and Exchange Commission (“SEC”) charged Lime Energy Co., an energy services provider and four of its executives for their roles in an accounting fraud in which the company recognized revenue earlier than allowed… Read More
Rule 147: Not Just for In-State Investors Anymore
On October 26, 2016, the Securities & Exchange Commission (the “SEC”) adopted amendments to Rule 147 of the Securities Act of 1933, as amended (“Securities Act”) to modernize the exemptions for intrastate securities offerings. According to the SEC, the… Read More
Court Enters Final Judgments Against Paul Downey and Two Others
On September 29, the Honorable Sam R. Cummings of the United States District Court for the Northern District of Texas entered final judgments against Defendants Paul Downey, Jeffry Downey, and John Leonard. The judgments followed summary-judgment rulings in… Read More
Louis Buonocore and 4 Others Charged for Operating a Fraudulent Penny Stock Scheme
On September 29, 2016, the Securities and Exchange Commission (“SEC”) charged five individuals for engaging in a fraudulent scheme to illegally profit by manipulating the market and price for the stock of Ecoland International, Inc. (now known as… Read More
Marcus Luna and Norell Walker Charged in Penny Stock Scam
On September 30, 2016 the Securities and Exchange Commission (“SEC”) charged an attorney and three others in California with defrauding investors out of $13.6 million in a penny stock pump-and-dump scheme. The SEC alleges that Marcus Luna and… Read More
Cannabis Company Infinex Ventures and CEO Ronald Salem Charged with Fraud
On September 30, 2016, the Securities and Exchange Commission (“SEC”) filed fraud charges against cannabis company Infinex Ventures, Inc. and its CEO Ronald Salem. According to the SEC’s complaint filed in the U.S. District Court for the District of Colorado,… Read More
SEC Expands Rule 504 of Regulation D & Rule 147
On October 26, 2016, the Securities and Exchange Commission (the “SEC”) adopted final rules that amend Rule 504 of Regulation D and Rule 147. According to the SEC, these new rules modernize how companies can raise money to… Read More
Former CEO of Gerova Financial Gary Hirst Charged with Securities Fraud
On September 28, 2016, a federal court jury in New York, New York convicted Gary Hirst, the former CEO and President of Gerova Financial Group Ltd., of securities fraud, wire fraud and conspiracy charges. The criminal… Read More
Aegis Oil and President Patrick Beason Charged with Oil and Gas Fraud
On September 29, 2016, the Securities and Exchange Commission (“SEC”) charged Aegis Oil, LLC and its President and CEO Patrick Reagan Beason with defrauding investors in oil and gas projects managed by Aegis. According to the SEC’s complaint filed… Read More
Robert Gadimian Charged with Insider Trading
The Securities and Exchange Commission (“SEC”) today charged the former senior director of regulatory affairs for Puma Biotechnology with insider trading ahead of the company’s news announcements about a drug to treat breast cancer. The SEC alleges that… Read More
SEC Charges Former Stockbroker Peter Kohli with Fraud and Orders an Asset Freeze
On September 28, 2016 the Securities and Exchange Commission (“SEC”) announced charges and an emergency asset freeze against former stockbroker Peter Kohli for defrauding investors in his failing mutual fund business. The SEC’s complaint, filed in federal court in Philadelphia,… Read More
