SEC v. Two Men Who Defrauded Investors
On September 21, 2015 the Securities and Exchange Commission (SEC) charged two men behind a scheme that defrauded investors in YaFarm Technologies Inc., a company that purported to provide stem cell therapy. The SEC’s complaint filed in federal… Read More
SEC Charges Ross Shapiro, Michael Gramis, and Tyler Peters With Fraud
On September 9, 2015, the Securities and Exchange Commission (SEC) announced fraud charges against three traders accused of repeatedly lying to customers relying on them for honest and accurate pricing information about residential mortgage-backed securities (RMBS). The SEC… Read More
SEC Obtains Summary Judgment Against Xytos In Securities Fraud
The Securities and Exchange Commission (SEC) announced that on August 24th, 2015, the Honorable Sarah Evans Barker of the United States District Court for the Southern District of Indiana granted the SEC’s motion for summary judgment against… Read More
SEC Charges Microcap Stock Promoters
Last month, the Securities & Exchange Commission (SEC) charged a trio of alleged microcap stock promoters with defrauding investors by disseminating promotional investor relations e-mails and newsletters exhorting readers to immediately buy purportedly hot stocks so they could… Read More
Regulation A+ Adds Two New Bad Actor Disqualification Triggers
The final Regulation A+ rules amend Rule 262 to include bad actor disqualification provisions as adopted under Rule 506(d) of Regulation D. Consistent with the disqualification provisions of Rule 506(d), the final rules add two additional disqualification triggers… Read More
SEC Halts Ponzi Scheme Targeting Spanish and Portuguese Communities
On June 30, 2015, the Securities and Exchange Commission (SEC) announced securities fraud charges and an asset freeze against the operators of a pyramid and Ponzi scheme falsely promising a gold mine of investment opportunity to investors in… Read More
SEC Charges Former Stockbroker with Conducting Ponzi Scheme
On July 1, 2015, the Securities and Exchange Commission (SEC) charged a former stockbroker in Pennsylvania with conducting a Ponzi scheme and stealing investor money to purchase a condominium in Florida, funding his own vacations and other personal expenses…. Read More
SEC Action: Silverleaf Financial and Dwight Shane Baldwin Charged
On June 25, 2015, the Securities and Exchange Commission (SEC) filed a civil injunctive action against Silverleaf Financial, LLC and its sole principal Dwight Shane Baldwin in connection with an alleged fraudulent offering. The SEC action alleges… Read More
Neal Goyal Sentenced to Six Years For Ponzi Scheme
On July 3, 2015, former investment fund manager, Neal Goyal was sentenced to six years in prison for his role in a Ponzi scheme. In addition, Goyal was ordered to pay more than $9.2 million in restitution… Read More
SEC Freezes Profits From Avon Stock Manipulation Scheme
On June 4, 2015, the Securities and Exchange Commission (SEC) announced an emergency asset freeze of two U.S. brokerage accounts connected to schemes to manipulate the securities of Avon and other stocks, thwarting any ability for fraudsters to cash… Read More
SEC Halts Advance Fee Scam Targeting Home Building Industry
On May 15, 2015, the Securities and Exchange Commission (SEC) announced charges and an emergency asset freeze in an alleged advance fee scam involving bogus prime bank instruments. The SEC complaint was filed on May 11, 2015, in… Read More
Steven Palladino Pleads Guilty to Criminal Contempt for Violating SEC Orders
On May 14, 2015, the Securities and Exchange Commission (SEC) announced that, Steven Palladino pled guilty to 25 counts of criminal contempt charged by the United States Attorney’s Office for the District of Massachusetts based on his repeated… Read More
Big Apple Consulting, Mark Jablon and Mark Kaley Lose Appeal
On April 9, 2015, the U.S. Court of Appeals for the Eleventh Circuit upheld a lower court’s ruling in the U.S. Securities and Exchange Commission v. Big Apple Consulting USA Inc., MJMM Investments, LLC, Marc Jablon and Mark… Read More
SEC Charges Vadda Energy Corporation With Oil And Gas Fraud
On April 10, 2015, the Securities and Exchange Commission (“SEC”) charged Mieka Energy Corporation, and its founder and president Daro Ray Blankenship, with fraudulently offering oil and gas investments. Two of Mieka’s salesmen, Robert William Myers, Jr. and… Read More
SEC Charges Brian Polito With Oil and Gas Fraud
The Securities and Exchange Commission (“SEC”) Division of Enforcement filed suit against GC Resources, LLC and Brian J. Polito for oil and gas fraud. According to the allegations, Polito defrauded investors through the sale of interests in oil… Read More
SEC Charges HD Vest Investment Securities
On March 4, 2015, the Securities and Exchange Commission (SEC) announced it had charged HD Vest Investment Securities with violating key customer protection rules after failing to adequately supervise registered representatives who misappropriated customer funds. HD Vest Investment… Read More
Doug Furth Indicted in Kickback Scheme
On December 12, 2014, the Securities and Exchange Commission (“SEC”) filed a civil injunctive action in the United States District Court for the Eastern District of New York, charging Douglas Furth, a stock promoter who resides in Solon, Ohio,… Read More
SEC Sanctions Firms For Lack of Auditor Independence
On December 8, 2014, the Securities and Exchange Commission (the “SEC”) sanctioned eight firms for violating auditor independence rules when they prepared the financial statements of brokerage firms that were their audit clients. The SEC determined that the audit… Read More
SEC Charges Traders Cafe Founders As Unregistered Brokers
The Securities & Exchange Commission (the “SEC”) announced securities fraud charges against Albert J. Scipione and Matthew P. Ionno who they allege pursued investors to set up accounts at their Traders Cafe for day trading. Traders Cafe functioned as a… Read More
SEC Obtains Final Judgment Entered Against 8000, Inc. CEO, Thomas Kelly
Securities Lawyer 101 – Securities Law Blog On October 9, 2014, the Securities and Exchange Commission (the “SEC”) announced a Final Judgment had been entered against Thomas Kelly, the former Chief Executive Officer of 8000, Inc. 8000, Inc. was… Read More
Reefer Madness – More Indicted In Pot Stock Scams
Securities Lawyer 101 Blog On August 5, 2014, the Attorney’s Office for the Western District of Washington announced criminal charges against Mikhail Galas, Alexander Hawatmeh, and Christopher Mrowca in connection with two heavily touted pot stocks, Growlife and… Read More
Crucible Capital and Chuck Moore Indicted for Obstructing SEC Investigation
On August 9, 2014, the Securities and Exchange Commission (the “SEC”) announced charges against Chuck Moore and Crucible Capital Group, a New York-based brokerage firm for allegedly violating net capital requirements and falsifying books and records to conceal… Read More
SEC Charges Julian Brown and Bahamian Brokerage Firm, Alliance Investment Management
Securities Law Blog On August, 8, 2014, the Securities and Exchange Commission (“SEC”) announced charges against Julian Brown and his firm Alliance Investment Management Limited (AIM). According to the SEC allegations, Julian Brown purported to be the “custodian”… Read More
Frank Speight and International Stock Transfer Charged
Securities Lawyer 101 Blog On July 24, 2014, the Securities and Exchange Commission (the”SEC”) and Department of Justice announced charges against Frank-Speight (Cecil Franklin Speight) and his Florida-based transfer agent with defrauding investors by using aggressive boiler room tactics to… Read More
SEC Charges Investor Relations Provider, Kevin McGrath
Securities Law Blog On July 22, 2014, the Securities and Exchange Commission (the “SEC”) charged a partner at a New York-based investor relations firm with insider trading on confidential information he learned about two clients while he helped… Read More
SEC Charges Lawbreakers Who Secretly Ran Microcap Company
Posted by Securities Lawyer 101 Blog On July 16, 2014, the Securities and Exchange Commission announced SEC charges against James E. Cohen and Joseph Corazzi who secretly controlled Natural Blue Resources including the operational and management decisions of… Read More
Five Charged with Attempted Manipulation of Amogear
Securities Lawyer 101 On July 14, 2014, the U.S. Attorney for the District of Massachusetts, and the Federal Bureau of Investigation today announced charges against five individuals whose attempt to manipulate shares of Boston-based Amogear Inc. was caught… Read More
SEC Obtains Judgment Against John Babikian
Securities Lawyer 101 Blog On July 8, 2012, the Securities and Exchange Commission announced (“SEC”) announced a final judgment against defendant John Babikian in the Commission action styled, SEC v. John Babikian, Civil Action No. 14-CV-1740 (S.D.N.Y.). The… Read More
