FINRA Addresses Financial Fraud
Securities Lawyer 101 Blog In September 2013, the Financial Industry Regulatory Authority (“FINRA”), with the help of the National Center for Victims of Crime, compiled and circulated “An Advocate’s Guide to Assisting Victims of Financial Fraud.” The lengthy… Read More
SEC Does Not Act on 20 Percent of Wells Notices Issued
Securities Lawyer 101 Blog When the Securities and Exchange Commission (“SEC”) substantially completes an investigation into violations of the securities laws, it may issue what’s known as a “Wells notice” to targets, informing them that it intends to… Read More
Panama Enacts New Bearer Shares Law
Securities Lawyer 101 Blog On July 29, 2013, the Panamanian National Assembly enacted a law that “sets forth a custody regime applicable to bearer shares.” It requires that any and all owners of bearer shares must appoint an… Read More
SEC Brings Enforcement Action in EB-5 Visa Program Investment Scam
Securities Lawyer 101 Blog Like many other countries, the United States offers potential immigrants preferential treatment—in the form of conditional visas and eventual green cards—if they’re willing to invest in economic development projects that will preserve or create… Read More
Whistleblower Award $14 Million Bounty By SEC
Securities Lawyer 101 Blog On October 1, 2013, the Securities and Exchange Commission (the “SEC”) announced it had awarded more than $14 million to a whistleblower whose information led to an SEC enforcement action that recovered substantial investor funds. … Read More
Wedding Singer Charged by the SEC with Fraud
Securities Lawyer 101 Blog The Securities and Exchange Commission (the “SEC”) brought a securities fraud enforcement action against an Oklahoma wedding singer and former investment adviser, Larry J. Dearman, Sr., and his special friend, Marya Gray in connection… Read More
SEC Charges Three Penny Stock Auditors
Securities Lawyer 101 Blog On September 30, 2013, the SEC charged three penny stock auditors, Malcolm L. Pollard, Wilfred W. Hanson and John Kinross-Kennedy, for violating federal securities laws or failing to comply with U.S. auditing standards during… Read More
DTC Proposes Procedures For DTC Chills and Global Locks
The Depository Trust Company is a subsidiary of The Depository Trust & Clearing Corporation (“DTCC”), and is the central securities depository in the U.S. The SEC, the Federal Reserve System and the New York State Department of Financial… Read More
SEC Charges Tibor Klein and Michael Shechtman With Insider Trading
Securities Lawyer 101 Blog Continuing its crackdown on violators of insider trading laws, on September 20, 2013 the Securities and Exchange Commission (“SEC”) charged Tibor Klein, president of Klein Financial Services, with illegal insider trading in his own… Read More
SEC Charges ImageXpres and John and Kevin Zankowski With Securities Fraud
Securities Lawyer 101 Blog On September 25, 2013, the Securities and Exchange Commission (“SEC”) charged ImageXpres Corporation (ImageXpres), its CEO and president John Zankowski, and its CFO Kevin Zankowski with securities fraud. ImageXpres is a microcap technology company… Read More
SEC Charges South Florida Boiler Room Operators in NFL Scam
Securities Lawyer 101 Blog On September 26, 2013, the Securities and Exchange Commission (“SEC”) charged two Floridians, Peter Kirschner and Stuart Rubens, with defrauding investors—many of them seniors—in a boiler room scheme they operated between July 2011 and… Read More
SEC Suspends Trading in Left Behind Games and Charges Founder Troy Lyndon
Securities Lawyer 101 Blog On September 25, 2013, the Securities and Exchange Commission (the “SEC”) brought three enforcement actions against penny stock company Left Behind Games (LFBG), its founder, Troy Lyndon, and a consultant, Ronald Zaucha. The three enforcement… Read More
California Attorney David Tamman Sentenced to Seven Years in Securities Fraud Case
Securities Lawyers Gone Wild Blog On 23 September 2013, the U.S. Attorney’s Office for the Central District of California announced that attorney David Tamman, formerly of the Nixon Peabody law firm, had been sentenced to seven years’ imprisonment… Read More
General Solicitation and Advertising Under Rule 506
Securities Lawyer 101 Blog As of September 23, 2013, the Securities and Exchange Commission (“SEC”) rules implementing some provisions of the JOBS Act became effective. Among them is the new Regulation D Rule 506(c). While the floodgates to raising capital… Read More
SEC Proposes Pay Ratio Disclosure Rule in Compliance with Dodd-Frank Act
Securities Lawyer 101 Blog On September 18, 2013, the Securities and Exchange Commission (“SEC”) voted to propose a new rule that would require public companies to state pay ratio disclosure of the compensation of its chief executive officer… Read More
SEC Charges Three in Assured Capital High Yield Investment Scam
Securities Lawyer 101 Blog On September 20, 2013, the Securities and Exchange Commission (“SEC”) charged Jennifer Hoffman and John Boschert, former principals of a dissolved Florida company called Assured Capital Consultants, LLC, and Bryan Zuzga, Assured’s purported escrow agent,… Read More
FBI Arrests Securities Attorney and Stock Promoter in Texas
Securities Lawyers Gone Wild Blog On September 19, 2013, the Dallas Division of the Federal Bureau of Investigation (“FBI”) announced the unsealing of an indictment charging Jason Wynn, a former penny stock promoter, and securities attorney Martin Cantu… Read More
Rule 506 Offerings Q & A l Securities Lawyer 101
Securities Lawyer 101 Blog Private placement offerings under Rule 506 of Regulation D of the Securities Act of 1933, as amended (the “Securities Act”) are a cost effective and relatively quick way for private companies to raise capital before,… Read More
Ohio Shuts Down Crowdfunding Website SoMoLend
Securities Lawyer 101 Blog Since the JOBS Act became law, numerous crowdfunding websites have popped up on the internet. This month, the first enforcement action was brought against a crowdfunding web-site. The Ohio Division of Securities issued a notice… Read More
The Role of Legal Opinions in the CMKM Fraud
Securities Lawyer 101 Blog In the penny stock markets it has become almost common practice for restricted stockholders to attorney shop for legal opinion writers so that they can receive unrestricted or free trading securities. Sometimes these shareholders lawyer shop… Read More
FINRA Issues Risk Alert For Rule 506 Private Placements
Securities Lawyer 101 Blog On September 17, 2013, The Financial Industry Regulatory Authority (“FINRA”) issued an investor alert concerning Rule 506 private placement offerings to caution investors about the risks involved in private placement offerings. FINRA cautions investors that Rule… Read More
SEC Issues Trading Suspension of the Securities of PacWest Equities
Securities Lawyer 101 Blog On September 17, 2013, the Securities and Exchange Commission (“SEC”) issued a trading suspension of the common shares of PacWest Equities (“PWEI”), a company whose shares were quoted on the OTC Markets with an OTC Pink Current… Read More
What is Depository Trust Company?
Securities Lawyer 101 Blog Q. What is The Depository Trust Company (DTC)? A. It is the only stock depository in the United States. Q. How do public companies obtain DTC eligibility? A. Issuers must satisfy specific criteria established… Read More
Conducting An EB-5 Offering Under Rule 506 of Regulation D
The EB-5 offering program was created by the U.S. Congress as part of the Immigration Act of 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. Using an EB-5 offering foreign investors can obtain… Read More
Mary Jane’s Last Dance l FINRA Marijuana Scam Alert
Both the SEC and FINRA have published risk alerts for investors, “medical marijuana is legal in almost 20 states, and recreational use of the drug recently legalized in two states, the cannabis business has been getting a lot of attention—including the… Read More
Why Do I Have To Hire a Transfer Agent When Going Public? – Going Public Lawyers
Transfer agents play a key role in the going public process. Transfer agents are the record keeper for a company’s securities. Share ownership is reflected on the issuer’s shareholder list. Transfer agents issue and cancel certificates to reflect changes in… Read More
SEC Charges Indiana Man In Ponzi Scheme
Securities Lawyer 101 Blog Marcum, of Noblesville, Indiana, is the principal of Guaranty Reserves Trust, and was once a broker. He’s also been an investment adviser registered with the SEC. In 2010, he began presenting himself to potential marks… Read More
