Securities Lawyer 101 l Brenda Hamilton

Securities Lawyer 101 l Brenda Hamilton

Tuesday, June 27, 2017

SEC Announces Additional Charges Against Anthony Portelli


On June 22, 2017, the Securities and Exchange Commission ("SEC") announced additional charges in an enforcement investigation involving Anthony Portelli, a Wall Street firm’s securities lending desk, and the improper handling of American Deposit...
https://www.securitieslawyer101.com/?p=36795

Monday, June 26, 2017

Pazoo, Inc. Used in Artificial Inflation Scheme


On June 21, 2017, the Securities and Exchange Commission ("SEC") charged a New Jersey-based group of stock promoters with fraud involving the manipulation and artificial inflation of the share price of a microcap company, Pazoo, Inc. The scheme gr...
https://www.securitieslawyer101.com/?p=36790

Friday, June 23, 2017

Seyed Taher Kameli Charged for Defrauding Investors


On June 22, 2017, the Securities and Exchange Commission ("SEC") charged Seyed Taher Kameli, a Chicago-based immigration attorney, with defrauding investors participating in the EB-5 immigrant investor program by improperly commingling and misusin...
https://www.securitieslawyer101.com/?p=36787

Thursday, June 22, 2017

SEC Charges Arista's CEO and Attorney


On June 20, 2017, the Securities and Exchange Commission ("SEC") announced charges involving a scheme to disguise the nature of Arista, a public company's financing amid financial difficulties, and a corresponding manipulation of the price of the c...
https://www.securitieslawyer101.com/?p=36784

Wednesday, June 21, 2017

Mark Northrop Barred by the SEC


On June 19, 2017, the Securities and Exchange Commission (“Commission”) deemed it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 203(f) of the Investment Advise...
https://www.securitieslawyer101.com/?p=36781

Tuesday, June 20, 2017

SEC Takes Action Against Ann Hiskey


  On June 19, 2017, the Securities and Exchange Commission (“Commission”) deemed it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securiti...
https://www.securitieslawyer101.com/?p=36776

Monday, June 19, 2017

SEC Charges CannaVEST Corp. with Fraud


On June 16, 2017, the Securities and Exchange Commission ("SEC") filed fraud charges against CannaVEST Corp., a Las Vegas-based hemp oil company, and its CEO for inflating the company's assets on its balance sheet. The SEC complaint filed in f...
https://www.securitieslawyer101.com/?p=36773

Friday, June 16, 2017

Antonio Katz Pleads Guilty to Criminal Charges


On June 1, 2017, Antonio Katz, a defendant in ongoing SEC litigation, pled guilty to criminal charges filed by the U.S. Attorney for the District of Massachusetts. Antonio Katz was charged with one count of conspiracy and one count of securities ...
https://www.securitieslawyer101.com/?p=36768

Thursday, June 15, 2017

SEC Adopts JOBS Act Amendments


  On April 5, 2017, the Securities and Exchange Commission ("SEC") announced that it has adopted JOBS Act amendments to increase the amount of money companies can raise through crowdfunding to adjust for inflation.  It also approved amendme...
https://www.securitieslawyer101.com/?p=36765

Wednesday, June 14, 2017

Can-Cal & SkyStar Temporarily Suspended


The U.S. Securities and Exchange Commission (“Commission”) announced the temporary suspension of trading in the securities of the following issuers, commencing at 9:30 a.m. EDT on June 9, 2017 and terminating at 11:59 p.m. EDT on June 22, 201...
https://www.securitieslawyer101.com/?p=36760

Tuesday, June 13, 2017

David Fuselier Charged for Fraudulent Scheme


On June 6, 2017, the Securities and Exchange Commission ("SEC") charged David Fuselier, a chief executive officer, with perpetrating a fraudulent scheme to create the false appearance of improvement in the financial statements of two publicly tra...
https://www.securitieslawyer101.com/?p=36755

Monday, June 12, 2017

Marc Broidy & Broidy Wealth Advisors Receive Final Judgement


On May 30, 2017, the Honorable Eric N. Vitaliano of the United States District Court for the Eastern District of New York entered a final consent judgment against defendants Marc Broidy and Broidy Wealth Advisors, LLC ("BWA"), enjoining them from v...
https://www.securitieslawyer101.com/?p=36750

Sunday, June 11, 2017

Final Judgement Against GAW Miners and ZenMiner


On June 2, 2017, the U.S. District Court for the District of Connecticut entered a final default judgment against two Connecticut-based companies, GAW Miners, LLC and ZenMiner, LLC, in a case alleging that these companies and their principal conduc...
https://www.securitieslawyer101.com/?p=36747

Saturday, June 10, 2017

SEC Charges iPayment Executives with Fraud


On March 10, 2017, the Securities and Exchange Commission ("SEC") charged two former iPayment executives, a credit card processing company, with masterminding a fraudulent scheme to steal millions of dollars through phony expense reimbursements, i...
https://www.securitieslawyer101.com/?p=36744

Friday, June 9, 2017

Nima Hedayati Charged With Insider Trading


On March 14, 2017, the Securities and Exchange Commission ("SEC") announced that Nima Hedayati, an auditor based in the Silicon Valley, has agreed to settle charges that he traded on inside information about a client on the verge of a merger. ...
https://www.securitieslawyer101.com/?p=36741

Thursday, June 8, 2017

Alpine Securities Fails to Comply to Anti-Money Laundering Law


On June 5, 2017, the Securities and Exchange Commission ("SEC") charged Alpine Securities Corporation, a Salt Lake City-based brokerage firm, with securities law violations related to its alleged practice of clearing transactions for microcap stoc...
https://www.securitieslawyer101.com/?p=36738

Wednesday, June 7, 2017

Larry Holley Charged with Fraud


On March 30, 2017, the Securities and Exchange Commission ("SEC") announced fraud charges and an emergency asset freeze obtained against Larry Holley, a Michigan-based pastor, accused of exploiting church members, retirees, and laid-off auto worke...
https://www.securitieslawyer101.com/?p=36733

Tuesday, June 6, 2017

LottoNet Accused of Conducting Boiler Room Scheme


On March 27, 2017, the Securities and Exchange Commission ("SEC") announced charges against LottoNet Operating Corp., a Florida-based company, its CEO, and its top sales agent accused of conducting a boiler room scheme that solicits investments in...
https://www.securitieslawyer101.com/?p=36730

Monday, June 5, 2017

Lawson Financial Corporation Settles Fraud Charges


On April 5, 2017, the Securities and Exchange Commission ("SEC") announced that Lawson Financial Corporation, an Arizona-based brokerage firm, its CEO, and its former underwriter’s counsel have agreed to settle charges related to municipal bond ...
https://www.securitieslawyer101.com/?p=36726

Friday, June 2, 2017

John Bocchino Barred by FINRA


On June 1, 2017, the Financial Industry Regulatory Authority ("FINRA") announced that it has barred former Morgan Stanley Smith Barney registered representative John Bocchino for concealing approximately $190 million in Venezuelan bond trades from ...
https://www.securitieslawyer101.com/?p=36723

Thursday, June 1, 2017

Medbox Charged by the SEC


On March 9, 2017, the Securities and Exchange Commission ("SEC") charged Medbox, a California-based company, and its founder with falsely touting “record” revenue numbers to investors and claiming to be a leader in the marijuana industry while...
https://www.securitieslawyer101.com/?p=36720

Wednesday, May 31, 2017

Verto Capital Settles Charges for Ponzi-like Scheme


On May 4, 2017, the Securities and Exchange Commission ("SEC") announced that Verto Capital Management, a New Jersey-based firm, and its CEO have agreed to pay more than $4 million to settle charges that they used new investor money to repay earli...
https://www.securitieslawyer101.com/?p=36717

Tuesday, May 30, 2017

Desarrolladora Homex Settle Fraud Charges


On March 3, 2017, the Securities and Exchange Commission ("SEC") announced that Mexico-based homebuilding company Desarrolladora Homex S.A.B. de C.V. has agreed to settle charges that it reported fake sales of more than 100,000 homes to boost reve...
https://www.securitieslawyer101.com/?p=36713

Monday, May 29, 2017

MagnaChip & CFO Settle Accounting Fraud Charges


On May 1, 2017, the Securities and Exchange Commission ("SEC") announced that MagnaChip, a South Korea-based semiconductor manufacturer, and its former CFO have agreed to settle charges related to an accounting scheme to artificially boost revenue...
https://www.securitieslawyer101.com/?p=36710

Sunday, May 28, 2017

Centers for Medicare and Medicaid Services Employees Charged with Insider Trading


On May 24, 2017, the Securities and Exchange Commission ("SEC") announced charges in an alleged insider trading scheme involving tips of nonpublic information about government plans to cut Medicare reimbursement rates by former Centers for Medicar...
https://www.securitieslawyer101.com/?p=36705

Saturday, May 27, 2017

SEC Files Fraud Charges Against Robert Murray


On May 19, 2017, the Securities and Exchange Commission ("SEC") filed fraud charges against Robert Murray, a Virginia-based mechanical engineer accused of scheming to manipulate the price of Fitbit stock by making a phony regulatory filing. ...
https://www.securitieslawyer101.com/?p=36702

Friday, May 26, 2017

SEC Charges David Humphrey with Securities Fraud


On May 9, 2017, the Securities and Exchange Commission ("SEC") charged David Humphrey, a former employee, with securities fraud in connection with his trading of options and other securities. The SEC’s complaint alleges that David Humphr...
https://www.securitieslawyer101.com/?p=36697

Thursday, May 25, 2017

Barclays Capital Required to Refund Advisory Fees by SEC


On May 10, 2017, the Securities and Exchange Commission ("SEC") announced an enforcement action requiring Barclays Capital to refund advisory fees or mutual fund sales charges to clients who were overcharged. In a settlement of more than $9...
https://www.securitieslawyer101.com/?p=36694

Wednesday, May 24, 2017

Miles Nadal Settles $5.5 Million for SEC Case


On May 11, 2017, the Securities and Exchange Commission ("SEC") announced that Miles Nadal, the former CEO of a marketing company, has agreed to pay $5.5 million to settle charges that his perks were not properly disclosed to shareholders. Public...
https://www.securitieslawyer101.com/?p=36689

Tuesday, May 23, 2017

SEC Charges Nomura Securities International Inc. Head Traders


On May 15, 2017, the Securities and Exchange Commission ("SEC") charged a pair of former head traders who ran the commercial mortgage-backed securities (CMBS) desk at Nomura Securities International Inc. with deliberately lying to customers in orde...
https://www.securitieslawyer101.com/?p=36686

Monday, May 22, 2017

Walter Little and Neighbor Charged by SEC for Insider Trading


On May 11, 2017, the Securities and Exchange Commission ("SEC") charged Walter Little, a former partner at an international law firm, and his neighbor with making more than $1 million in illicit profits by insider trading around corporate announcem...
https://www.securitieslawyer101.com/?p=36681

Sunday, May 21, 2017

Axesstel Fails to Comply with Exchange Act


The Securities and Exchange Commission (“SEC”) deemed it necessary and appropriate for the protection of investors that public administrative proceedings be, and hereby are, instituted pursuant to Section 12(j) of the Securities Exchange Act of...
https://www.securitieslawyer101.com/?p=36639

Saturday, May 20, 2017

Jared Galanis Pleads Guilty, SEC Suspends Him


The Securities and Exchange Commission (“SEC”) deemed it appropriate to issue an order of forthwith suspension of Jared Galanis pursuant to Rule 102(e)(2) of the Commission’s Rules of Practice (17 C.F.R. § 200.102(e)(2)), which states tha...
https://www.securitieslawyer101.com/?p=36635

Friday, May 19, 2017

SEC Suspends Mark McKinnies


The Securities and Exchange Commission (“SEC”) deemed it appropriate and in the public interest that public administrative proceedings are instituted against Mark McKinnies pursuant to Rule 102(e)(3)(i) of the Commission’s Rules of Practice.
https://www.securitieslawyer101.com/?p=36632

Thursday, May 18, 2017

SEC Charges Matthew Krimm with Defrauding Investors


On April 25, 2017, the Securities and Exchange Commission ("SEC") charged Matthew Krimm, a former mortgage loan officer, with defrauding investors, including mortgage loan customers of his former employer. The SEC's complaint, filed in federal...
https://www.securitieslawyer101.com/?p=36611

Wednesday, May 17, 2017

SEC Charges Demitrios Hallas for Reckless Trading


On April 25, 2017, the Securities and Exchange Commission ("SEC") charged Demitrios Hallas, a former broker, with knowingly or recklessly trading unsuitable investment products in the accounts of five customers and misappropriating more than $170,0...
https://www.securitieslawyer101.com/?p=36605

Tuesday, May 16, 2017

Whistleblower Awarded Almost $4 Million by SEC


On April 25, 2017, the Securities and Exchange Commission ("SEC") announced an award of nearly $4 million to a whistleblower who tipped the agency with detailed and specific information about serious misconduct and provided additional assistance du...
https://www.securitieslawyer101.com/?p=36602

Monday, May 15, 2017

SEC Charges Avaneesh Krishnamoorthy with Insider Trading


On April 24, 2017, the Securities and Exchange Commission ("SEC") charged Avaneesh Krishnamoorthy, a vice president in the risk management department of a New York-based investment bank, with insider trading on confidential information he learned ...
https://www.securitieslawyer101.com/?p=36592

Sunday, May 14, 2017

SEC Charges Kevin Amell with Fraud


On April 24, 2017, the Securities and Exchange Commission ("SEC") announced fraud charges against Kevin Amell, a Massachusetts-based portfolio manager accused of diverting at least $1.95 million to his personal brokerage account from a fund over wh...
https://www.securitieslawyer101.com/?p=36585

Saturday, May 13, 2017

Magyar Telekom Executives Agree to Pay Penalties


On April 24, 2017, the Securities and Exchange Commission ("SEC") announced that two former executives at Hungarian-based telecommunications company Magyar Telekom have agreed to pay financial penalties and accept officer-and-director bars to sett...
https://www.securitieslawyer101.com/?p=36582

Friday, May 12, 2017

SEC Charges Brothers for Hydrocarb Fraud Scheme


The Securities and Exchange Commission ("SEC") has charged two brothers - Kent and Mike Watts - with orchestrating a fraudulent scheme to qualify the stock of Hydrocarb Energy Corporation for listing on a major stock exchange, which supposedly woul...
https://www.securitieslawyer101.com/?p=36579

Thursday, May 11, 2017

Robert Stewart Fined & Suspended by FINRA


Robert Stewart (CRD #5746657, Dewey, Arizona) submitted a Letter of Acceptance, Waiver and Consent ("AWC") in which he was assessed a deferred fine of $7,500 and suspended from association with any FINRA member in any capacity for four months. Wit...
https://www.securitieslawyer101.com/?p=36571

Wednesday, May 10, 2017

Brian Scarpellini Named Respondent in Check-Kiting Scheme


Brian Scarpellini (CRD #6320844, Plainsboro, New Jersey) was named a respondent in a FINRA complaint alleging that he converted funds totaling $1,158 from his member firm’s bank affiliate by engaging in a check-kiting scheme. The complaint alleg...
https://www.securitieslawyer101.com/?p=36567

Tuesday, May 9, 2017

Austin Morton Named Respondent In FINRA Complaint


Austin Morton (CRD #5538108, Spiro, Oklahoma) was named a respondent in a FINRA complaint alleging that he converted a total of $36,000 from a former elderly customer with dementia. The complaint alleges that Austin Morton first took $20,000 i...
https://www.securitieslawyer101.com/?p=36564

Monday, May 8, 2017

Rosemary McGinley Suspended From Association with FINRA


Rosemary McGinley (CRD #2435216, Doylestown, Pennsylvania) submitted a Letter of Acceptance, Waiver and Consent ("AWC") in which she was suspended from association with any FINRA member in any capacity for 10 business days. In determining the ...
https://www.securitieslawyer101.com/?p=36554

Sunday, May 7, 2017

Legend Securities Named Respondent for Various Claims


Legend Securities, Inc. (CRD #44952, New York, New York) was named a respondent in a FINRA complaint alleging various claims arising from failures in the firm’s compliance and supervisory systems and procedures. The complaint alleges that Legend...
https://www.securitieslawyer101.com/?p=36551

Saturday, May 6, 2017

FINRA Fines Albert Fried & Company


Albert Fried & Company, LLC (CRD #1914, New York, New York) submitted a Letter of Acceptance, Waiver and Consent ("AWC") in which the firm was censured and fined $27,500. Without admitting or denying the findings, Albert Fried & Company co...
https://www.securitieslawyer101.com/?p=36546

Friday, May 5, 2017

Alejandro Falla Barred From Association with FINRA Members


Alejandro Falla (CRD #5064828, Miami, Florida) submitted an AWC in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Falla consented to the sanction and to the entry of findi...
https://www.securitieslawyer101.com/?p=36540

Thursday, May 4, 2017

Jay Hatton Submits Offer of Settlement


Jay Hatton (CRD #1725472, Edinburgh, Indiana) submitted an Offer of Settlement in which he was assessed a deferred fine of $10,000 and suspended from association with any FINRA member in any capacity for two years. Without admitting or denying th...
https://www.securitieslawyer101.com/?p=36537

Wednesday, May 3, 2017

Lightspeed Trading Named Respondent in FINRA Complaint


Lightspeed Trading, LLC (CRD #35519, New York, New York) was named a respondent in a FINRA complaint alleging that it failed to establish, document, and maintain an adequate system of risk management controls and supervisory procedures, including c...
https://www.securitieslawyer101.com/?p=36529

Tuesday, May 2, 2017

J.W. Korth & Company to pay Restitiution


J.W. Korth & Company, Limited Partnership (CRD #26455, Lansing, Michigan) was ordered to pay the approximate amount of $29,268, plus interest, in restitution to customers and in lieu of a fine, is required to retain an independent consultant ...
https://www.securitieslawyer101.com/?p=36525

Monday, May 1, 2017

FINRA Fines BMA Securities


BMA Securities, LLC (CRD #108219, El Segundo, California) submitted a Letter of Acceptance, Waiver and Consent ("AWC"), in which the firm was censured and fined $25,000. Without admitting or denying the findings, BMA Securities consented to th...
https://www.securitieslawyer101.com/?p=36522

Sunday, April 30, 2017

FINRA Expels Fox Financial Firm


Fox Financial Management Corporation (CRD® #134277, Carrollton, Texas), Brian Murphy (CRD #4743164, Frisco, Texas) and James Rooney Jr. (CRD #1857754, Carrollton, Texas) were expelled from FINRA® membership and fined $100,000. Murphy was fin...
https://www.securitieslawyer101.com/?p=36519

Saturday, April 29, 2017

FINRA Senior Helpline Celebrates 2nd Anniversary With $4.3 Million


On April 20, 2017, the Financial Industry Regulatory Authority (FINRA) announced that FINRA’s Securities Helpline for Seniors®,  their senior helpline, marked its second anniversary with $4.3 million in voluntary reimbursements to callers since...
https://www.securitieslawyer101.com/?p=36509

FINRA Senior Helpline Celebrates 2nd Anniversary With $4.3 Million


On April 20, 2017, the Financial Industry Regulatory Authority (FINRA) announced that FINRA’s Securities Helpline for Seniors®,  their senior helpline, marked its second anniversary with $4.3 million in voluntary reimbursements to callers since...
https://www.securitieslawyer101.com/?p=36509

FINRA Senior Helpline Celebrates 2nd Anniversary With $4.3 Million


On April 20, 2017, the Financial Industry Regulatory Authority (FINRA) announced that FINRA’s Securities Helpline for Seniors®,  their senior helpline, marked its second anniversary with $4.3 million in voluntary reimbursements to callers since...
https://www.securitieslawyer101.com/?p=36509

Friday, April 28, 2017

SEC Charges Matthew Fox with Securities Fraud


On April 19, 2017, the Securities and Exchange Commission ("SEC") charged Matthew Fox of Plano, Texas and his company, Wayne Energy, LLC, with securities fraud arising from a failed offering of interests in a joint venture formed to rework and re...
https://www.securitieslawyer101.com/?p=36490

SEC Charges Matthew Fox with Securities Fraud


On April 19, 2017, the Securities and Exchange Commission ("SEC") charged Matthew Fox of Plano, Texas and his company, Wayne Energy, LLC, with securities fraud arising from a failed offering of interests in a joint venture formed to rework and re...
https://www.securitieslawyer101.com/?p=36490

Thursday, April 27, 2017

SEC Issues Rule 147 Intrastate Crowdfunding Guidance – Posted by Brenda Hamilton


In October of last year, the Securities and Exchange Commission (“SEC”), adopted final rules (1) amending Rule 147, also known as Intrastate Crowdfunding and Rule 504 under the Securities Act of 1933, as amended (the “Securities Act”),  an...
https://www.securitieslawyer101.com/2017/sec-issues-rule-147-intrastate-crowdfunding-guidance-brenda-hamilton/

SEC Charges Justin Meadlin of Hyaline Capital Management


On April 17, 2017, the Securities and Exchange Commission ("SEC") charged a New York-based investment adviser, Hyaline Capital Management, LLC, and one of its founders, Justin Meadlin, with disseminating false information to prospective investors a...
https://www.securitieslawyer101.com/?p=36493

SEC Charges Justin Meadlin of Hyaline Capital Management


On April 17, 2017, the Securities and Exchange Commission ("SEC") charged a New York-based investment adviser, Hyaline Capital Management, LLC, and one of its founders, Justin Meadlin, with disseminating false information to prospective investors a...
https://www.securitieslawyer101.com/?p=36493

Wednesday, April 26, 2017

NYSE IPO Guide: DMMs and SLPs


One of the most important decisions for a company going public is to choose the right market for listing the company’s shares. This is true for initial public and direct public offerings. The New York Stock Exchange ("NYSE") provides the opportun...
https://www.securitieslawyer101.com/?p=36487

NYSE IPO Guide: DMMs and SLPs


One of the most important decisions for a company going public is to choose the right market for listing the company’s shares. This is true for initial public and direct public offerings. The New York Stock Exchange ("NYSE") provides the opportun...
https://www.securitieslawyer101.com/?p=36487

Tuesday, April 25, 2017

SEC Announces Temporary Trading Suspension of Sunshine Capital


At 9:30 a.m. EDT on April 12, 2017, the Securities and Exchange Commission  announced the temporary suspension of trading in the securities of Sunshine Capital, Inc. (“SCNP”), of Hollywood, Florida, terminating at 11:59 p.m. EDT on April 26, 2...
https://www.securitieslawyer101.com/?p=36483

Monday, April 24, 2017

SEC Announces Temporary Trading Suspension of Bingo Nation


At 9:30 a.m. EDT on April 13, 2017, the Securities and Exchange Commission announced the temporary suspension of trading in the securities of Bingo Nation Inc. , of Las Vegas, Nevada and terminating at 11:59 p.m. EDT on April 27, 2017. The Commiss...
https://www.securitieslawyer101.com/?p=36480

SEC Announces Temporary Trading Suspension of Bingo Nation


At 9:30 a.m. EDT on April 13, 2017, the Securities and Exchange Commission announced the temporary suspension of trading in the securities of Bingo Nation Inc. , of Las Vegas, Nevada and terminating at 11:59 p.m. EDT on April 27, 2017. The Commiss...
https://www.securitieslawyer101.com/?p=36480

Sunday, April 23, 2017

SEC Charges Lucita Zamoras with Operating a Fraudulent Promissory Note Scheme


The SEC's complaint, filed in federal court in the Northern District of Illinois, alleges that Lucita Zamoras solicited investors for a promissory note program and subsequently misappropriated the investors' funds. From at least October 2009 throug...
https://www.securitieslawyer101.com/?p=36465

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...
https://www.securitieslawyer101.com/?p=36462

Judgment Entered in Safety Technologies Unregistered Securities Offering


On April 4, 2017,  a final judgment by consent has been entered against Thomas Connerton and Safety Technologies LLC ("Safety Technologies") for defrauding investors by misleading them to invest in a purported glove manufacturing company and then ...
https://www.securitieslawyer101.com/?p=36462

Saturday, April 22, 2017

SEC Charges Michael Shumway with Securities Fraud


On April 8, 2017,  the Securities and Exchange Commission (SEC) announced securities fraud charges against Michael Shumway, a former corporate secretary and treasurer of two Utah water companies for misappropriating and fraudulently selling corpor...
https://www.securitieslawyer101.com/?p=36458

SEC Charges Michael Shumway with Securities Fraud


On April 8, 2017,  the Securities and Exchange Commission (SEC) announced securities fraud charges against Michael Shumway, a former corporate secretary and treasurer of two Utah water companies for misappropriating and fraudulently selling corpor...
https://www.securitieslawyer101.com/?p=36458

Friday, April 21, 2017

SEC Obtains Injunction and Asset Freeze Against Daniel Glick


On April 13, 2017, the Securities and Exchange Commission (SEC) announced a preliminary injunction against Daniel Glick and his unregistered investment advisory firm Financial Management Strategies (FMS), continued the asset freeze in the name of t...
https://www.securitieslawyer101.com/?p=36454

Thursday, April 20, 2017

SEC Charges Ryan Gilbertson for $30 Million Stock Manipulation Scheme


On March 22, 2017, Ryan Gilbertson, a Minnesota man previously accused by the SEC of orchestrating an elaborate scheme to siphon millions of dollars from Dakota Plains Holdings, Inc., was indicted on 13 counts of wire fraud. Also charged in the ind...
https://www.securitieslawyer101.com/?p=36451

Wednesday, April 19, 2017

SEC Charges Lawyers Mustafa Sayid, Norman Reynolds and Paralegal Kevin Jasper in a Stock Manipulation Scheme


On April 12, 2017, the Securities and Exchange Commission (SEC) filed fraud charges against, Mustafa Sayid, a New York City-based securities lawyer for orchestrating taking control of two publicly traded shell companies and rigging them and their s...
https://www.securitieslawyer101.com/?p=36438

Tuesday, April 18, 2017

SEC Acquires Asset Freeze Over 4D Circle


On April 14, 2017, the Securities and Exchange Commission announced charges against two Fort Worth residents and their company, 4D Circle, for defrauding investors in a commercial real estate investment scheme. At the SEC's request, U.S. District J...
https://www.securitieslawyer101.com/?p=36434

Monday, April 17, 2017

SEC Case Against Lionshare Faud Enters Final Default Judgement


On April 14, 2017, a federal court in Boston, Massachusetts, entered a final default judgment in an ongoing SEC enforcement action against Lionshare Ventures, LLC, a Massachusetts-based privately-held corporation that the SEC alleges was a business...
https://www.securitieslawyer101.com/?p=36430

Sunday, April 16, 2017

SEC Files for Stock Promotion Schemes Against 27 Individuals & Entities


On April 10, 2017, the SEC announced enforcement actions against 27 individuals and entities behind various alleged stock promotion schemes that left investors with the impression they were reading independent, unbiased analyses on investing websi...
https://www.securitieslawyer101.com/?p=36424

Saturday, April 15, 2017

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...
https://www.securitieslawyer101.com/2017/safety-technologies-unregistered-securities/

SEC Charges Traders For Insider Trading


On April 14, 2017, the Securities and Exchange Commission announced an emergency court order to freeze assets in two brokerage accounts used last week to reap more than $1 million in alleged insider trading profits in connection with a merger announ...
https://www.securitieslawyer101.com/2017/sec-charges-traders-insider-trading/

Monday, April 3, 2017

What SEC Disclosure Is Required By Section 17(b) For Investor Relations Firms?


We are often contacted by investors, stock promoters and investor relations firms about the disclosures that must be provided in promotional websites, emails and other investor relations materials. Section 17(b) of the Securities Act of 1933 requi...
https://www.securitieslawyer101.com/?p=19758

What Disclosure Is Required By Section 17(b) For Investor Relations Firms?


We are often contacted by investors, stock promoters and investor relations firms after the SEC or DOJ brings an action against stock promoters.  We are asked a myriad of questions about the disclosures that must be provided in promotional websites,...
https://www.securitieslawyer101.com/?p=19758

Saturday, March 25, 2017

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 transac...
https://www.securitieslawyer101.com/?p=36411

Friday, March 24, 2017

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 issuer...
https://www.securitieslawyer101.com/2017/sec-charges-jerry-miller-petrotech-oil-fraud/

Friday, March 17, 2017

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 th...
https://www.securitieslawyer101.com/?p=36381

Thursday, March 16, 2017

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 Pustelni...
https://www.securitieslawyer101.com/2017/sec-charges-lek-securities-posted-brenda-hamilton/

Sunday, March 12, 2017

Alex Kon Challenges SEC Administrative Law Judges


The SEC's Use of Administrative Law Judges Afer Dodd Frank Following passage of the Dodd-Frank Act in 2010, the Securities and Exchange Commission (“SEC”) began making greater use of its in-house administrative judges to hear enforcement cases...
https://www.securitieslawyer101.com/2017/alex-kon-challenges-sec-administrative-law-judges/

Thursday, March 9, 2017

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 a...
https://www.securitieslawyer101.com/?p=36361

Wednesday, March 8, 2017

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...
https://www.securitieslawyer101.com/2016/adam-tracy-attorney-custodianship-shell-companies/

Sunday, March 5, 2017

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 ...
https://www.securitieslawyer101.com/?p=36348

Saturday, March 4, 2017

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 reports such as Form 10-K and 1...
https://www.securitieslawyer101.com/2017/36353/

Wednesday, March 1, 2017

SEC Staff Issues Guidance Update 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 ...
https://www.securitieslawyer101.com/2017/sec-staff-issues-guidance-update-investor-bulletin-robo-advisers/

Tuesday, February 28, 2017

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 pub...
https://www.securitieslawyer101.com/?p=36326

Monday, February 27, 2017

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 adv...
https://www.securitieslawyer101.com/?p=36301

Sunday, February 26, 2017

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...
https://www.securitieslawyer101.com/?p=36305

Friday, February 24, 2017

Brokerage Firm Paying Penalty 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 su...
https://www.securitieslawyer101.com/?p=36308

Thursday, February 23, 2017

Purported Real Estate Investment Manager Settles Fraud Charges


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 money in a...
https://www.securitieslawyer101.com/2017/purported-real-estate-investment-manager-settles-fraud-charges/

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 thing...
https://www.securitieslawyer101.com/?p=36298

Wednesday, February 22, 2017

Cases Related to Disclosures During Battles for Corporate Control


The Securities and Exchange Commission (SEC) on February 14, 2017 announced two enforcement actions involving disclosure violations that deprived investors of material information during battles for corporate control of publicly t...
https://www.securitieslawyer101.com/2017/cases-related-disclosures-battles-corporate-control/

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 ...
https://www.securitieslawyer101.com/2017/morgan-stanley-settles-charges-related-etf-investments/

Friday, February 17, 2017

Former Shell Company, Terminus Energy and Its Officers Charged With Securities Fraud


On February 14, 2017 the Securities and Exchange Commission (the "SE"C) charged Terminus Energy, Inc and four corporate officers with securities fraud. According to the SEC, Terminus Energy and its four officers misleading investors abo...
https://www.securitieslawyer101.com/2017/terminus-energy-charged-with-securities-fraud/

Wednesday, February 1, 2017

FBI Informant Guy Gentile's Indictment Is Tossed by Judge


Guy Gentile Gets Good News On January 30, 2017, brokerage firm owner Guy Gentile got the good news he'd been hoping for:  Judge Jose Linares of the United States District Court for the District of New Jersey had dismissed the indictment filed aga...
https://www.securitieslawyer101.com/2017/fbi-informant-guy-gentiles-indictment-tossed-judge/

Monday, January 23, 2017

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 S...
https://www.securitieslawyer101.com/?p=36142

Sunday, January 22, 2017

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 83 million penny st...
https://www.securitieslawyer101.com/?p=36134

Saturday, January 21, 2017

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 enforcement acti...
https://www.securitieslawyer101.com/2017/final-judgment-entered-prime-bank-fraud-brenda-hamilton/

Saturday, January 7, 2017

General Cable Corporation


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 invest...
https://www.securitieslawyer101.com/2017/general-cable-corporation/