In re David A. Altom and Gabriel V. Graven (A.P. May 29, 2019, Settled)

Action against Respondents, a senior director of health and safety at an oilfield services company and his neighbor, for alleged insider trading.  According to the SEC, Respondent director told his neighbor about an upcoming acquisition of his company before the transaction occurred.  The SEC alleges that the neighbor then traded while in possession of this material nonpublic information and tipped another unnamed trader.  Respondent director has agreed to pay a civil penalty of $85,000.  Respondent
Continue Reading

SEC v. George Slowinski (N.D. Ill. May 29, 2019, Contested)

Action against Defendant, principal and owner of a real estate investment company, for alleged offering fraud. According to the SEC, Defendant informed investors that they would receive high returns on investments pooled to develop and resell real estate. The SEC alleges that Defendant instead used investor funds to pay hidden fees and commissions and misappropriated the funds for other projects.

SEC Complaint

SEC Litigation Release
Continue Reading

SEC v. Donald A. Milne III and Instaprin Pharmaceuticals, Inc. (D.N.J May 29, 2019, Settled)

Action against Defendants, a pharmaceutical company and its CEO, and Relief Defendant, a defunct company owned by Defendant CEO, for alleged fraud on investors. According to the SEC, Defendant CEO misrepresented that investor funds would be used for Defendant company’s operating expenses. The SEC alleges that Defendant CEO misappropriated these funds. Defendants have agreed to pay $3,628,325 in disgorgement and prejudgment interest. Defendant company has agreed to pay a civil penalty of $2,771,493. Defendant individual
Continue Reading

In re Stephen Brandon Anderson (A.P. May 28, 2019, Settled)

Action against Respondent, an investment adviser, for allegedly overcharging customer advisory fees.  According to the SEC, Respondent falsely informed clients about the reason for transfers of their assets and made material misstatements in SEC filings.  The SEC also alleges that Respondent failed to implement required policies and procedures.  Respondent has agreed to a three-year supervisory and compliance bar and to pay disgorgement of $367,176, prejudgment interest of $38,205, and a civil penalty of $100,000.

SEC
Continue Reading

SEC v. David Sims, et al. (C.D. Cal. May 23, 2019, Contested)

Action against Defendants, president of an equities company, his partner, three companies that they controlled, and their lawyer, for alleged fraud on investors. According to the SEC, Defendant president and Defendant partner falsely told investors that their funds would be invested in non-existent financial instruments and large currency trading platforms. The SEC alleges that Defendants misappropriated investor funds and that Defendant lawyer aided and abetted the fraud.

SEC Complaint

SEC Litigation Release
Continue Reading

SEC v. Savraj Gat-Aura (a/k/a Samuel Aura a/k/a/ Sam Aura) and Core Agents, Ltd. (d/b/a Core Agents International, Ltd) (S.D.N.Y. May 23, 2019, Contested)

Action against Defendants, a representative of an office space rental company and a company that he used to recruit sales agents, for alleged aiding and abetting of a fraudulent investment scheme. According to the SEC, Defendant representative provided false and misleading materials to sales agents in order to recruit them to sell fraudulent investments in the rental company. Defendant representative has been charged in a parallel criminal action.

SEC Complaint

SEC Litigation Release
Continue Reading

SEC v. Henry Ford, et al (E.D. Pa. May 22, 2019, Contested)

Action against Defendants, a biometric device and software company and its founder, for alleged fraud on investors. According to the SEC, Defendants falsely represented that prospective customers were interested in their technology and falsified documents related to these statements.

SEC Complaint

SEC Litigation Release
Continue Reading

SEC v. Robert C. Morgan, et al. (W.D.N.Y. May 22, 2019, Contested)

Action against Defendants, a real estate developer, his fund management company, and his acquisition company, for alleged misappropriation of investor funds. According to the SEC, Defendants secured investors by falsely representing that their funds would be used to purchase real estate. The SEC alleges that Defendants instead used investor funds to pay off other investors and unrelated loans.

SEC Complaint

SEC Litigation Release 

SEC Press Release
Continue Reading

SEC v. Daniel Pacheco (C.D. Cal. May 22, 2019, Contested)

Action against Defendant and Relief Defendants, the controlling member of a marketing company, one other individual, and five LLCs, for an alleged pyramid scheme and unregistered offering of securities. According to the SEC, Defendant sold instructional e-commerce packages that he falsely represented would allow investors to obtain cryptocurrency rebates and recruitment bonuses. The SEC alleges that Defendant failed to pay these rebates and bonuses and instead misappropriated investor funds.

SEC Complaint

SEC Litigation Release

SEC
Continue Reading

SEC v. Mark “Christian” Ramsey (E.D. Pa. May 21, 2019, Contested)

Action against Defendant, the friend and business partner of a former football player charged with insider trading, for alleged participation in the same insider trading scheme.  According to the SEC, Defendant received tips from a former investment banker, also previously charged by the SEC, for information related to upcoming corporate acquisitions and traded on the former football player’s behalf while in possession of that information.  Defendant has also been charged in a parallel criminal action.
Continue Reading

SEC v. David N. Osegueda, et al. (C.D. Cal. May 20, 2019, Contested)

Action against Defendants, a real estate agent, a beverage marketer and developer, a corporate consultant and promoter, and a bank employee, for an alleged pump-and-dump scheme. According to the SEC, Defendants artificially increased the stock price and trading volume of a beverage and cannabis company owned by two of the Defendants by promoting the company through false and misleading statements. The SEC alleges that once the price and trading volume of the stock artificially rose,
Continue Reading

In re Wilson-Davis & Co., Inc. (A.P. May 15, 2019, Settled)

Action against Respondent, a broker-dealer, for alleged failure to file Suspicious Activity Reports (SARs).  According to the SEC, Respondents failed to file SARs for certain penny stock transactions that involved suspicious trading patterns.  Respondent has agreed to pay a civil penalty of $300,000.

SEC Order

SEC Administrative Summary
Continue Reading

SEC v. Andrew I. Farmer, et al. (S.D. Tex. May 15, 2019, Settled)

Action against Defendants, five individuals, for an alleged pump-and-dump scheme. According to the SEC, Defendants promoted penny stocks in companies that they controlled and participated in coordinated trading between these companies to imitate market interest and increase share prices. The SEC alleges that Defendants then sold the penny stocks when the price artificially rose. Defendants have agreed to pay total disgorgement of $10.25 million and prejudgment interest of $895,487. Defendants have also pleaded guilty in
Continue Reading

SEC v. Collector’s Coffee, Inc., d/b/a Collectors Café and Mykalai Kontilai (S.D.N.Y. May 14, 2019, Contested)

Action against Defendants, a collectibles auction company and its CEO, for alleged fraud on investors.  According to the SEC, Defendants solicited investments based on false claims about its inventory and the number of dealers signed up with the Defendant company.  The SEC also alleges that Defendant CEO misappropriated investor funds to pay for personal expenses and provided falsified documents to the SEC.

SEC Complaint

SEC Litigation Release
Continue Reading

In re NextBlock Global Ltd. and Alex Tapscott (A.P. May 14, 2019, Settled)

Action against Respondents, a blockchain company and its principal, for alleged offering fraud. According to the SEC, Respondents solicited investor funds based on false claims that prominent members of the blockchain community served as advisors to Respondent company. Respondent principal has agreed to pay a civil penalty of $25,000. The SEC did not impose a penalty on Respondent company due to its payment of approximately $520,000 under a settlement agreement with the Ontario Securities Commission.
Continue Reading

LexBlog