Action against Defendant, an investment banking executive, for alleged insider trading. The SEC alleges that Defendant used a brokerage account under another name to place trades regarding 12 different companies prior to the announcement of market-moving events about which he had material nonpublic information through his employment, raising approximately $140,000 in illicit profits.
Action against Defendant, a registered broker-dealer, for alleged retail fraud. The SEC alleges that Defendant offered a nonexistent secure investment vehicle with guaranteed monthly interest. The SEC further alleges that Defendant used the funds for personal expenses and created fictitious account statements.
Action against Defendant, a self-described blockchain expert, for an alleged fraudulent initial coin offering scheme. The SEC alleges that Defendant misrepresented his business connections, fabricated testimonials from corporate customers, and misled investors regarding the performance of the ICO.
Action against Defendant, a commodity pool operator, for alleged failure to supervise its employees’ handling of customer accounts and failure to preserve complete records. According to the CFTC, Defendant failed to maintain written policies or procedures concerning the post-execution allocation of bunched orders and did not train its staff regarding their obligations related to the handling of bunched orders. The CFTC further alleges that Defendant’s policies and procedures regarding compliance with regulatory actions were insufficient ... Continue Reading
Action against Respondent, the sole member of an LLC promoting penny stocks, for alleged publication of an offer for sale without disclosing the consideration he was paid by the issuer. Respondent has agreed to pay $25,000 in disgorgement, $332 in prejudgment interest, and a $20,000 civil penalty.
Action against Defendants, the CEO of a microcap company and its treasurer, for allegedly defrauding investors in a penny stock scheme. The SEC alleges that Defendants entered a series of sham contracts and made material misstatements to investors regarding the company’s activities. Defendants have agreed to permanent injunctions and to bars from serving as officers or directors of public companies.
Action against Respondents, an investment adviser and its managing member, for alleged misrepresentations regarding the assets and performance of a hedge fund. The SEC alleges that Respondent manager inflated performance metrics in order to increase performance fee payouts. Respondent manager has agreed to a bar with the right to reapply, and Respondent investment adviser has agreed to pay a $160,000 civil penalty.
Action against Respondent, assistant to the sole officer and director of a microcap company, for participation in an alleged fraudulent private offering. The SEC alleges that Respondent recruited participants for sham private offerings and facilitated the transfer of shares controlled by his principal. The SEC further alleges that after covertly gaining a controlling share of a microcap company, Respondent inflated trading volume and price before exiting his position. Respondent agreed to cease and desist from ... Continue Reading
Action against Defendant, an unregistered commodity trading advisor, for allegedly making material misstatements regarding his experience, registration status, and use of client funds and for failing to register. According to the CFTC, Defendant falsely stated that he had trading experience and was registered as an adviser during solicitations to FOREX investors and misappropriated investor funds for personal expenses.
Actions against Defendants, a medical marijuana company, its CEO, and its statutory underwriters, for allegedly making misleading claims regarding the company’s business operations and financial condition, including a partnership with comedian Tommy Chong. The SEC further alleges that Defendants falsified financial statements and made an unregistered offering of securities. Defendant CEO has agreed to disgorgement and prejudgment interest of $158, 829. Defendant statutory underwriters agreed to pay, jointly and severally, disgorgement and prejudgment interest of ... Continue Reading
Action against Defendant, a real estate developer, in connection with an alleged scheme to raise money for construction of an airport by over-pledging collateral on secured promissory notes. According to the SEC, Defendant used approximately $5.98 million of $21.9 million of investor funds on personal expenses. The SEC further alleges that Defendant used collateral that was pledged to prior investors to recruit new ones. Parallel criminal charges have been filed.
Action against Respondents, a registered transfer agent and its former principal, for their alleged role in enabling public trading of shares of undisclosed “blank check” companies. According to the SEC, undisclosed control persons, who manufactured undisclosed blank check companies, hired Respondents to facilitate the sale of purportedly unrestricted shares of the blank check companies by reverse merger. The SEC alleges that despite red flags that the shares were illegal distributions, Respondents removed restrictive legends and ... Continue Reading
Action against Defendants, owners of a medical billing company, in connection with alleged misrepresentations related to a “go-private” sale of a publicly traded company. The SEC alleges that Defendants induced an investor to buy the company based on misrepresentations regarding historical and projected revenues. The SEC further alleges that Defendants created paper subsidiaries and reported income and revenue from these subsidiaries to increase the value of the company.
Actions against Respondents, a registered broker-dealer, its AML Officer, and a registered broker-dealer specializing in business clearing equity securities, for alleged reporting violations. The SEC alleges that Respondents Chardan and Basmagy neglected to file Suspicious Activity Reports (“SARs”) despite having reason to suspect that certain penny stock transactions that they executed were associated with fraudulent activity. The SEC alleges that Respondent ICBC cleared some of these suspicious trades and contacted Chardan regarding the suspicious activity, ... Continue Reading
Action against Defendant, an investment adviser, in connection with an alleged scheme to misappropriate investor funds. According to the SEC, Defendant used the money in various private funds as one pool of money, regularly moving money between funds to meet cash flow needs. The SEC further alleges that Defendant made misrepresentations to clients regarding fund performance, management fee arrangements, and use of investor funds and overpaid himself in violation of investor agreements. The court will ... Continue Reading