Judgment Entered in Safety Technologies Unregistered Securities Offering
On April 4, 2017, a final judgment was entered against Safety Technologies LLC (“Safety Technologies”) and Thomas Connerton for defrauding investors by misleading them to invest in a purported glove manufacturing company and then diverting their money for Connerton’s… Read More
SEC Adopts T+2 Trade Settlement Rule
On March 22, 2017, the Securities and Exchange Commission (“SEC”) adopted the T+2 amendment which shortens the standard settlement cycle for most broker-dealer securities transactions. Currently, the standard settlement cycle for these transactions is three business days, known as… Read More
SEC Charges Jerry Miller in Petrotech Oil Fraud
On March 13, 2017, the Securities and Exchange Commission charged Jerry Miller in connection with Petrotech Oil and Gas, Inc.. According to the SEC allegations, Miller is the principal of a Florida-based consulting firm to several microcap issuers…. Read More
What is the Transfer Agent Direct Registration System (DRS)?
The Depository Trust Company (“DTC”) offers a service to transfer agents known as the Direct Registration System (“DRS”). DRS allows transfer agents to provide shareholders with the ability to hold their shares in book-entry form with the transfer agent… Read More
SEC Charges Lek Securities – Posted by Brenda Hamilton
On March 10, 2013, the Securities and Exchange Commission (“SEC”) announced fraud charges against Lek Securities and Avalon FA, a Ukraine-based trading firm in connection with a layering scheme. According to the SEC, Avalon FA, Fayyer and Pustelnik manipulated the… Read More
SEC Eases Access to Exhibits in SEC Filings
On March 1, 2017 the Securities and Exchange Commission (the “SEC”) approved amendments related to SEC filings. The new amendments make it easier for investors and other market participants to find and access exhibits in registration statements and… Read More
SEC Uses Satellite Imagery to Charge Desarrolladora Homex
Anyone who thinks that the Securities and Exchange Commission (the “SEC”) is behind the times should check out the SEC’s latest action against Mexico-based home building company Desarrolladora Homex S.A.B. de C.V. The SEC used satellite imagery to help… Read More
New SEC Approves Ease Access to Exhibits in SEC Filings
On March 1, 2017, the SEC voted to adopt rule and form amendments that impact SEC Filings. The SEC’s new rules make it easier to locate and access exhibits in registration statements such as Form S-1 and periodic… Read More
SEC Staff Issues Guidance and Investor Bulletin on Robo-Advisers
On February 23, 2017 the Securities and Exchange Commission (the “SEC”) published information and guidance concerning robo-advisers for investors and the financial services industry on the fast-growing use of robo-advisers, which are registered investment advisers that use computer… Read More
James P. Toner Jr Settles Fraud Charges – Posted by Brenda Hamilton
The Securities and Exchange Commission (SEC) on February 14, 2017 announced that James P. Toner Jr, a purported real estate investment manager has agreed to pay more than a half-million dollars to settle charges that he pocketed investor… Read More
SEC Brings Cases Related to Disclosures During Battles for Corporate Control
On February 14, 2017, the Securities and Exchange Commission (the “SEC”) announced two SEC enforcement actions involving disclosure violations that deprived investors of material information during battles for corporate control of publicly traded companies. In one case, the… Read More
Chinese Citizens Gain Massive Profits From Insider Trading on Comcast-Dreamworks Acquisition
On February 10, 2017 the Securities and Exchange Commission (SEC) announced that it obtained an emergency court order freezing brokerage accounts holding more than $29 million in illegal profits from insider trading in advance of the April… Read More
Financial Adviser Funds Lavish Lifestyle by Stealing from Client Accounts
The Securities and Exchange Commission (SEC) on February 3, 2017 charged Barry Connell, an investment adviser representative with stealing approximately $5 million from client accounts by initiating unauthorized wire transfers and issuing checks to third parties to… Read More
Sidoti & Company Fined For Compliance and Trading Surveillance Failures
The Securities and Exchange Commission (SEC) on February 13, 2017 announced that Sidoti & Company LLC, a New York-based brokerage firm has agreed to pay a $100,000 penalty to settle charges of compliance and trading surveillance failures.Federal… Read More
SEC Sues Investment Adviser Who Turned Thief
On February 2, 2017 the Securities and Exchange Commission (the “SEC”) charged Sentinel Growth Fund Management and its founder Mark J. Varacchi with stealing money from investors to settle a private lawsuit among other things. The SEC alleges… Read More
Morgan Stanley Settles Charges Related to ETF Investments
On February 14, 2017, the SEC announced that Morgan Stanley Smith Barney has agreed to pay an $8 million penalty and admit wrongdoing to settle charges related to single inverse ETF investments it recommended to advisory clients. The SEC’s… Read More
NASAA and SEC Sign Crowdfunding Agreement
On February 17, 2017 the Securities and Exchange Commission (the “SEC”) the North American Securities Administrators Association (“NASAA”) signed a crowding funding agreement. The agreement sets forth the rules to facilitate intrastate crowdfunding offerings and regional offerings take effect. The agreement… Read More
Former Shell Company, Terminus Energy and Its Officers Charged With Securities Fraud
On February 14, 2017 the Securities and Exchange Commission (the “SEC) charged Terminus Energy, Inc and four corporate officers with securities fraud. According to the SEC, Terminus Energy and its four officers misleading investors about the research, development,… Read More
SEC Final Judgment Entered Against Graduate Leverage
On December 23, 2016, the United States District Court for the District of Massachusetts entered final judgments against Graduate Leverage, LLC, GL Capital Partners, LLC, GL Investment Services, LLC, Taft Financial Services, LLC, and GL Advisor Solutions, Inc. These… Read More
Final Judgment Entered Against Gregg Mulholland Posted by Brenda Hamilton
On January 11, 2017, the U.S. District Court for the Eastern District of New York entered a final judgment against defendant Gregg R. Mulholland, a penny stock promoter charged in an SEC action with illegally selling more than… Read More
Final Judgment Entered in “Prime Bank” Fraud – By: Brenda Hamilton
On January 13, 2017, the U.S. District Court for the District of Minnesota entered a final judgment against Minnesota resident James M. Louks and his company, FiberPoP Solutions, Inc. Louks and FiberPoP are defendants in an SEC civil… Read More
Traders Charged With Hacking Lawyers – Posted by Brenda Hamilton
On December 27, 2016, the Securities and Exchange Commission charged three Chinese traders with fraudulently trading on hacked nonpublic market-moving information stolen from two prominent New York-based law firms, racking up almost $3 million in illegal profits. … Read More
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
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
