SEC Charges Buffalo Advisory Firm and Principal With Fraud Relating to Association With Barred Adviser Walter Grenda
The Securities and Exchange Commission filed charges against a Buffalo, New York, investment advisory firm and its owner for misleading firm clients about its association with a barred investment adviser, who is also being charged for violating the… Read More
Sanofi Charged With FCPA Violations
The Securities and Exchange Commission announced that Paris-based pharmaceutical company Sanofi has agreed to pay more than $25 million to resolve charges that its Kazakhstan and the Middle East subsidiaries made corrupt payments to win business. According to the… Read More
SEC Charges NFL Player Mychal Kendricks and Former Investment Banker With Insider Trading
The Securities and Exchange Commission charged a professional football player and a former investment banker with insider trading in advance of corporate acquisitions facilitated through coded text messages and FaceTime conversations. The SEC alleges that after meeting at a… Read More
Press Release SEC Charges Moody’s Investors Service Inc. With Internal Controls Failures and Ratings Symbols Deficiencies
The Securities and Exchange Commission announced that Moody’s Investors Service Inc., one of the nation’s largest credit ratings agencies, has agreed to pay a total of $16.25 million in penalties to settle charges involving internal control failures and… Read More
Legg Mason Charged With Violating the FCPA
The Securities and Exchange Commission announced that Legg Mason Inc. will pay over $34 million to resolve an SEC charge that the company violated the Foreign Corrupt Practices Act (FCPA) in a scheme to bribe Libyan government officials. According… Read More
What is FINRA Rule 6490? Going Public Lawyers
Complying with Rule 6490’s requirements may entail an unanticipated legal and compliance cost for issuers and their securities attorneys, who may be unfamiliar with FINRA’s authority under 10b-17. Additionally, many OTC Markets issuers are not prepared for the Depository Trust Company (“DTC”) review that may be prompted by the issuer’s corporate action notification.
Transamerica Entities to Pay $97 Million to Investors Relating to Errors in Quantitative Investment Models
The Securities and Exchange Commission today announced charges against four Transamerica entities for misconduct involving faulty investment models and ordered the entities to refund $97 million to misled retail investors. According to the SEC’s order, investors put billions of… Read More
Fee Rate Advisory #1 for Fiscal Year 2019
The Securities and Exchange Commission announced that in fiscal year 2019 the fees that public companies and other issuers pay to register their securities with the Commission will be set at $121.20 per million dollars. The securities laws require… Read More
SEC Bars David T. Laurance Perpetrator of Initial Coin Offering Fraud
The Securities and Exchange Commission obtained permanent officer-and-director and penny stock bars against the founder of a company who perpetrated a fraudulent initial coin offering (ICO) to fund oil exploration and drilling in California. According to the SEC’s… Read More
SEC Charges Oil Company CEO John Schiller With Hiding His Personal Loans
On July 16, 2018 The Securities and Exchange Commission charged the former CEO of Energy XXI Ltd. John Schiller with hiding more than $10 million in personal loans that he obtained from company vendors and a candidate for… Read More
SEC Updates List of Firms Using Inaccurate Information to Solicit Investors
The Securities and Exchange Commission announced on Aug. 6, 2018 that it has updated its list of unregistered firms that use misleading information to primarily solicit non-U.S. investors, adding 16 soliciting entities, four impersonators of genuine firms, and nine… Read More
Deutsche Bank to Pay Nearly $75 Million for Improper Handling of ADRs
The Securities and Exchange Commission announced on July 20, 2018 that two U.S.-based subsidiaries of Deutsche Bank AG will pay nearly $75 million to settle charges of improper handling of “pre-released” American Depositary Receipts (ADRs). The case stems from a continuing… Read More
SEC Charges Mizuho Securities for Failure to Safeguard Customer Information
On July 23, 2018 The Securities and Exchange Commission charged Mizuho Securities USA LLC for its failure to safeguard information pertaining to stock buybacks by its issuer customers. Mizuho failed to maintain and enforce policies and procedures aimed… Read More
Citigroup to Pay More Than $10 Million for Books and Records Violations and Inadequate Controls
The Securities and Exchange Commission announced that Citigroup has agreed to pay $10.5 million in penalties to settle two enforcement actions involving its books and records, internal accounting controls, and trader supervision. The charges stem from $81 million… Read More
The Distinction Between Equity Crowdfunding and Rule 506(c) When Raising Capital
The JOBS Act’s new rules permitting general solicitation and advertising in Rule 506 private placements became effective on September 23, and there is still some confusion about the difference between equity crowdfunding and general solicitation and advertising in… Read More
What is a Private Placement Memorandum – PPM? Going Public Lawyers
A private placement memorandum sometimes called a PPM is used by private companies in going public transactions and by existing public companies to raise capital by selling either debt or equity in an exempt offering.
SEC Adopts Amendments to Simplify and Update Disclosure Requirements
The Securities and Exchange Commission announced that it has voted to adopt amendments to certain disclosure requirements that have become duplicative, overlapping, or outdated in light of other Commission disclosure requirements, U.S. Generally Accepted Accounting Principles (GAAP), or changes… Read More
SEC Charges Ameriprise Financial Services for Failing to Safeguard Client Assets
The Securities and Exchange Commission announced that Ameriprise Financial Services Inc. will pay $4.5 million to settle charges that it failed to safeguard retail investor assets from theft by its representatives. According to the SEC’s order, five Ameriprise… Read More
Rule 506 Roadmap l Ask Securities Lawyer 101
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 prior to their going public… Read More
SEC Adopts Rule Amendments to Improve Municipal Securities Disclosure
The Securities and Exchange Commission adopted amendments to enhance transparency in the municipal securities market. The adopted amendments to Rule 15c2-12 of the Securities Exchange Act will focus on material financial obligations that could impact an issuer’s liquidity,… Read More
Merrill Lynch Settles SEC Charges of Undisclosed Conflict in Advisory Decision
The Securities and Exchange Commission announced that Merrill Lynch, Pierce, Fenner & Smith has agreed to pay approximately $8.9 million to settle charges that it failed to disclose a conflict of interest arising out of its own business interests in… Read More
SEC Charges Technology Fund Adviser Michael B. Rothenberg, Founder in Fraudulent Scheme
The Securities and Exchange Commission charged the founder of San Francisco-based venture capital funds and his investment advisory firm with overcharging investors to fund personal projects, including sending millions of dollars to his own virtual reality production company…. Read More
How to Spot a Penny Stock Scam
Have you ever played a penny stock? Or invested in one you believed or hoped was real, perhaps even the Next Big Thing? If so, you probably know the roads in Pennyland are full of potholes. Many of… Read More
SEC Chairman Clayton Announces Additional Investor Roundtable in Baltimore for Main Street Investors to ‘Tell Us’ About Their Investor Experience
Securities and Exchange Commission Chairman Jay Clayton announced that an additional investor roundtable to discuss the Commission’s recently proposed rules regarding the obligations of financial professionals to investors will be held in Baltimore on the evening of Sept…. Read More
SEC Charges Endurance International Group Holdings Inc. Executives With Inflating Operating Metrics
The Securities and Exchange Commission announced settled charges with two former top officers of Endurance International Group Holdings Inc. for overstating the company’s subscriber base, and charged a former executive of Constant Contact Inc. for making similar misrepresentations. … Read More
Barry Miller, Associate Director in Division of Investment Management, to Leave SEC After More Than 40 Years of Public Service
The Securities and Exchange Commission announced that Barry D. Miller, Associate Director of Disclosure Review and Accounting in the Division of Investment Management, will retire from the SEC at the end of this month after more than 40… Read More
SEC Files Charges Gannon Giguiere in Busted Microcap Schemes
On July 13, 2018 The Securities and Exchange Commission charged a stock promoter and four others involved in an alleged series of microcap fraud schemes that were foiled by FBI undercover work and an SEC trading suspension. According… Read More
Former CEO Kevin Modany and CFO Daniel Fitzpatrick of ITT Barred and Ordered to Pay Penalties
The Securities and Exchange Commission announced on July 6, 2018 settlements with two former senior executives of ITT Educational Services Inc., which the SEC charged hid its true financial condition from investors. This resolution successfully concludes the SEC’s case, which… Read More
