In re Panasonic Corporation (A.P. Apr. 30, 2018, Settled)

Action against Respondent, a global electronics company, for alleged anti-bribery, anti-fraud, books and records, and internal accounting controls violations.  According to the SEC, Respondent was involved in a bribery scheme whereby it provided a consulting position to a government official to induce him to assist Respondent in obtaining and retaining business from a state-owned airline.  The SEC further alleges that Respondent materially overstated its pre-tax income and net income by backdating an agreement with the ... Continue Reading

Follow-on APs, Suspensions, and Bars (April 2018)

  • In re James Moodhe (A.P. Apr. 2, 2018 – Settled)
  • In re NextGlass Technologies Corp. (Apr. 3, 2018 – Settled)
  • In re Gregory John Tuthill (Apr. 4, 2018 – Settled)
  • In re Joshua D. Mosshart (A.P. Apr. 5, 2018 – Settled)
  • In re Caleb J. Preston (A.P. Apr. 6, 201 – Settled)
  • In re Charles G. Preston (A.P. Apr. 6, 2018 – Settled)
  • In re Tobias J. Preston (A.P. Apr. 6, 2018 – Settled)
  • In
... Continue Reading

CFTC v. Glencore Agriculture B.V., et al. (A.P. Apr. 30, 2018, Settled)

Action against Respondents, two companies that originate agriculture commodities, for allegedly holding net positions in the ICE Futures Cotton No. 2 contracts that, in aggregate, exceeded the CFTC’s speculative position limits.  The CFTC further alleges that Respondents executed exchange of futures for physical transactions opposite each other’s cotton futures trading accounts, even though their accounts were not independently controlled.  Finally, the CFTC alleges that one Defendant submitted a Form 304 that failed to represent all ... Continue Reading

SEI Investments Global Funds Services (A.P. Apr. 26, 2018, Settled)

Action against Respondent, a statutory trust, in connection with alleged violations of the Investment Company Act relating to the pricing and administration of an affiliated unregistered money market fund.  According to the SEC, Respondent used a flawed methodology to determine the net asset value (“NAV”) of its shares, and used a stable NAV for some funds while using a floating NAV for others.  The SEC alleges that Respondent’s conduct was inconsistent with Rule 2a-7, disqualifying ... Continue Reading

CFTC v. Charles H. McAllister (W.D. Tex. Apr. 26, 2018, Contested)

Action against Defendant for alleged fraud and misappropriation in connection with contracts of sale of precious metals through his company.  According to the CFTC, Defendant and his company fraudulently solicited customers to send money to his company for the purchase of precious metals, but failed to procure all the metal promised, instead misappropriating funds to cover business expenses, invest in other businesses, and make Ponzi-like payments to earlier customers.  The CFTC further alleges that Defendant ... Continue Reading

CFTC v. Michael J. Salerno, et al. (E.D. Pa. Apr. 25, 2018, Contested)

Action against Defendants, an individual and his companies, in connection with an alleged fraudulent hiring process, fraudulent misrepresentations, and misuse of trader funds.  According to the CFTC, Defendants fraudulently solicited individuals to become forex traders by making false statements on online employment-related websites that Defendants required traders to pay a “risk deposit” and that Defendants would match the deposits with company funds in proprietary trading accounts and share a portion of the profits from trading ... Continue Reading

In re Andy Z. Fan (A.P. Apr. 25, 2018, Settled)

Action against Respondent in connection with his purchase of the securities of several undisclosed “blank check” companies with the intent to use the companies for future reverse mergers.  According to the SEC, Respondent used nominees to conceal his beneficial ownership of functionally all the issued securities of the blank check companies.  The SEC further alleges that Respondent authorized false press releases and financials and engaged in manipulative trading in the public markets to maintain the ... Continue Reading

SEC v. Diane J. Harrison, et al. (M.D. Fla. Apr. 25, 2018, Contested)

Action against Defendants, an attorney, her husband, and their friend, in connection with two microcap schemes involving undisclosed “blank check” companies.  According to the SEC, Defendants attorney and husband manufactured several microcap issuers with the intent to sell them based on their status as public companies with purportedly unrestricted shares available for resale in the public markets.  The SEC further alleges that Defendants attorney and husband created the false appearance that the companies were pursuing ... Continue Reading

WCAS Management Corporation (A.P. Apr. 24, 2018, Settled)

Action against Respondent, a registered investment adviser, for alleged failure to disclose conflicts of interest between Respondent and its private equity fund clients and fund investors in connection with an agreement between the adviser and a group purchasing organization (“GPO”).  According to the SEC, Respondent advised private equity funds which owned portfolio companies that used the GPO, and the GPO paid Respondent compensation based on a share of the fees the GPO received from vendors ... Continue Reading

SEC v. PixarBio Corp. et al. (D. Mass. Apr. 24, 2018, Contested)

Action against Defendants, a biotech startup, its founder and CEO, its employee, and Defendant founder’s friend.  According to the SEC, Defendants company, founder, and employee made false statements to investors about their progress in seeking FDA approval for a treatment, the amount of money Defendant company had raised, and a takeover bid of a company that Defendant founder had previously led.  In addition, the SEC alleges that Defendants founder, friend, and employee engaged in a ... Continue Reading

In re Altaba Inc., f/d/b/a Yahoo! Inc. (A.P. Apr. 24, 2018, Settled)

Action against Respondent technology company in connection with material misstatements and omissions related to a cyber-breach affecting numerous user accounts.  According to the SEC, Defendant learned of the breach, which resulted in unauthorized access to users’ personal information, but failed to disclose it in its public filing for approximately two years and failed to disclose business risks related to the breach, such as potential future litigation.  In addition, the SEC alleges that Defendant affirmatively denied ... Continue Reading

In re The Dun & Bradstreet Corporation (A.P. Apr. 23, 2018, Settled)

Action against Respondent business information company in connection with alleged FCPA violations arising out of conduct of Respondents foreign subsidiaries.  According to the SEC, Respondent’s subsidiaries made unlawful payments to obtain or retain business, and these payments were not accurately reflected in the subsidiaries’ books and records.  The SEC further alleges that Respondent failed to devise and maintain sufficient internal accounting controls to detect or prevent the improper payments.  Respondent has agreed to pay disgorgement ... Continue Reading

In re Medifirst Solutions, Inc. & Bruce J. Schoengood (A.P. Apr. 19, 2018, Settled)

Action against Respondents, a medical device company specializing in mobile handheld green and infrared laser devices used for anti-aging and skin care and its principal, for allegedly retaining a sanctioned accountant with knowledge that he was prohibited from acting in a financial management capacity.  Respondent has agreed to pay a civil penalty of $22,500.

SEC Order ... Continue Reading

CFTC v. Blake Harrison Kantor aka Bill Gordon, et al. (E.D.N.Y. Apr. 17, 2018, Contested)

Action against Defendants, two individuals and four entities, in connection with alleged unregistered binary options transactions.  According to the CFTC, Defendants solicited potential customers by falsely claiming that customers’ accounts would yield profits based on purported past profitable trading by one of the Defendants.  The CFTC further alleges that Defendants misappropriated customer funds for their personal use and sought to conceal their misappropriation by inviting customers to transfer their binary options account balances into a ... Continue Reading

SEC v. John Jumper (W.D. Tenn. Apr. 17, 2018, Contested)

Action against Defendant businessman for alleged misappropriation of funds from a company pension plan.  According to the SEC, Defendant misappropriated funds by forging documents, including resolutions of the Board of Directors, and used the misappropriated funds for personal and business expenses.

SEC Litigation Release   ... Continue Reading

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