Securities

Recent Posts

This Week in Securities Litigation (April 1, 2011)
Posted on 1 Apr 2011 by Thomas O. Gorman

In the week ending with "April Fools Day," the Commission continued to issue proposed regulations to implement the Dodd-Frank Wall Street and Consumer Protection Act. SEC Enforcement focused on investment fund fraud actions, filing or resolving... Read More

Offering Fraud: An SEC Enforcement Staple
Posted on 5 Jun 2013 by Thomas O. Gorman

One of the new staples of SEC enforcement is offering fraud cases. When coupled with Ponzi scheme or investment fund fraud actions, they constitute a significant portion of the day to day work load of the reorganized Enforcement Division. Two recent... Read More

SEC Files Offering Fraud and Ponzi Scheme Cases
Posted on 15 Apr 2015 by Doug Esten

A staple of SEC enforcement in recent years has been offering fraud and Ponzi scheme cases. This week the Commission filed two more of these actions, one an offering fraud targeting military personnel and a second and investment fund fraud case which... Read More

SEC Files Two Offering Fraud Actions Tied to a Horse Farm
Posted on 21 Apr 2015 by Thomas O. Gorman

The Commission filed two settled offering fraud actions centered in part around an entity engaged in the purchase and sale of thoroughbred horses called Raintree Racing. A second involved an offering of interests in a real estate investment firm known... Read More

SEC Files Offering Fraud and Ponzi Scheme Cases
Posted on 15 Apr 2015 by Thomas O. Gorman

A staple of SEC enforcement in recent years has been offering fraud and Ponzi scheme cases. This week the Commission filed two more of these actions, one an offering fraud targeting military personnel and a second and investment fund fraud case which... Read More

SEC Files Two Offering Fraud Cases
Posted on 7 Nov 2013 by Thomas O. Gorman

Offering fraud and Ponzi scheme cases have, in recent years, become a staple of the SEC enforcement division. Some of these cases are simple shams where the promoters lure unsuspecting investors with tales of quick, easy and safe returns. Others are more... Read More

SEC Files Another Offering Fraud Case
Posted on 9 Jul 2015 by Thomas O. Gorman

Offering fraud has long been a staple of SEC enforcement. SEC v. Baldwin, Civil Action No. 2:15-cv-00458 (D. UT. Filed June 25, 2015) is one such action, centered on the acquisition of two defaulted loans, collateralized by real estate. In one instance... Read More

SEC Brings Another Offering Fraud Case
Posted on 20 Oct 2014 by Thomas O. Gorman

The Commission filed another in what appears to be an unending series of offering fraud actions. Unlike many of its prior cases, this action centers on a Respondent who kept shifting his scheme to continually raise more money at the expense of innocent... Read More

This Week In Securities Litigation (Week ending October 5, 2012)
Posted on 10 Oct 2012 by Thomas O. Gorman

The President's new market crisis task force brought its first action this week. It named as a defendant Bear Stearns which has been acquired by JP Morgan. The New York AG, co-chair of the task force announced in the state of the union address earlier... Read More

SEC Files Offering Fraud Action Against Sellers of Over $10M Worth of Bonds to Public
Posted on 19 Nov 2014 by Thomas O. Gorman

A business man, a real estate company he acquired from his grandfather, a registered representative who has now been barred by FINRA from the securities business and Maryland Division of Securities from the advisory business and an unnamed broker teamed... Read More

Implications of the SEC’s Charges Against Unregistered Broker Based on EB-5 Program
Posted on 9 Jul 2015 by Omar Hakim

[UPDATE: This article was updated to correct the names of the respondents in the described case.] The Securities and Exchange Commission (“SEC”) has further demonstrated its intent to take a more active role in ensuring that participants... Read More

Former Adjunct Business School Professor, His Firm, the Placement Broker and Its Managing Partner Named in SEC Offering Fraud Actions
Posted on 3 Nov 2014 by Thomas O. Gorman

The Commission instituted administrative proceedings centered on an offering fraud orchestrated by a former adjunct Professor at Columbia Business School who taught, and previously specialized in, turning around troubled companies, along with his firm... Read More

SEC Files Offering Fraud Action Centered on Three Schemes In Three Years
Posted on 10 Dec 2013 by Thomas O. Gorman

The SEC brought another in a series of offering fraud cases. This one, however, does not focus on just one offering but three since mid- 2011. Promoters Robert Helms and Janniece Kaelin, their entities and Deven Sellers and Roland Barrera are named as... Read More

SEC Settles Unregistered Broker Charges Tied to Offering Fraud
Posted on 31 Jul 2015 by Thomas O. Gorman

The SEC entered into partial settlements with three persons charged with acting as brokers without registering. The charges were tied to an offering fraud which centered on selling interests in a firm that claimed to be engaged in the business of buying... Read More

SEC Files Offering Fraud, Microcap Fraud Actions
Posted on 16 Sep 2015 by Thomas O. Gorman

Microcap fraud and offering fraud cases are staples of SEC enforcement. The agency added to its totals in these areas, filing an additional offering fraud and microcap fraud action. SEC v. Mogler, Civil Action No. 15-cv-01814 (D. Ariz. Sept. 11, 2015... Read More

  • Blog Post: This Week in Securities Litigation (April 1, 2011)

    In the week ending with "April Fools Day," the Commission continued to issue proposed regulations to implement the Dodd-Frank Wall Street and Consumer Protection Act. SEC Enforcement focused on investment fund fraud actions, filing or resolving seven cases. The Commission also brought a...
  • Blog Post: Another Offering Fraud Case

    Cases involving the sale of unregistered securities and Ponzi schemes were among the leading categories of cases brought last year according to recent statistics from NERA Economic Consulting ( here ). The Commission's action against Kenneth Dachman combined elements of both. SEC v. Dachman, Case...
  • Blog Post: This Week In Securities Litigation (Week ending October 5, 2012)

    The President's new market crisis task force brought its first action this week. It named as a defendant Bear Stearns which has been acquired by JP Morgan. The New York AG, co-chair of the task force announced in the state of the union address earlier this year, brought the action. It differs substantially...
  • Blog Post: Offering Fraud: An SEC Enforcement Staple

    One of the new staples of SEC enforcement is offering fraud cases. When coupled with Ponzi scheme or investment fund fraud actions, they constitute a significant portion of the day to day work load of the reorganized Enforcement Division. Two recent examples of these cases are SEC v. Detroit Memorial...
  • Blog Post: SEC Files Another Offering Fraud Action

    Offering frauds continue to be the focus of the SEC Enforcement Division. Echoing claims from other recent cases, such as In the Matter of Scuderi Group, Inc., Adm. Proc. File No. 3-15344 (Filed May 30, 2013) (repeated share placements made under a claimed exemption which were one years long unregistered...
  • Blog Post: SEC Files Two Offering Fraud Cases

    Offering fraud and Ponzi scheme cases have, in recent years, become a staple of the SEC enforcement division. Some of these cases are simple shams where the promoters lure unsuspecting investors with tales of quick, easy and safe returns. Others are more complex, involving ventures which actually have...
  • Blog Post: SEC Files Offering Fraud Action Centered on Three Schemes In Three Years

    The SEC brought another in a series of offering fraud cases. This one, however, does not focus on just one offering but three since mid- 2011. Promoters Robert Helms and Janniece Kaelin, their entities and Deven Sellers and Roland Barrera are named as defendants. SEC v. Helms, Civil Action No. 1:13-cv...
  • Blog Post: SEC Brings an Offering Fraud Action Against a Claimed App Maker

    The SEC brought an action against a reputed “app” manufacturer who sold shares in two different entities beginning first in Colorado and later from Georgia. From each location, and for each entity, the sales pitch was essentially the same. Indeed, investors were told that the second company...
  • Blog Post: SEC Brings Another Offering Fraud Case

    The Commission filed another in what appears to be an unending series of offering fraud actions. Unlike many of its prior cases, this action centers on a Respondent who kept shifting his scheme to continually raise more money at the expense of innocent investors. In the Matter of Anthony Coronti, Adm...
  • Blog Post: Former Adjunct Business School Professor, His Firm, the Placement Broker and Its Managing Partner Named in SEC Offering Fraud Actions

    The Commission instituted administrative proceedings centered on an offering fraud orchestrated by a former adjunct Professor at Columbia Business School who taught, and previously specialized in, turning around troubled companies, along with his firm. Related actions were instituted naming the broker...
  • Blog Post: SEC Files Offering Fraud Action Against Sellers of Over $10M Worth of Bonds to Public

    A business man, a real estate company he acquired from his grandfather, a registered representative who has now been barred by FINRA from the securities business and Maryland Division of Securities from the advisory business and an unnamed broker teamed-up to sell millions of dollars of bonds to the...
  • Blog Post: SEC Files Prime Bank Fraud and Offering Fraud Actions as Administrative Proceedings

    The trend of selecting administrative proceedings rather than Federal court by the SEC appears to be continuing. Since last September, for example, the SEC has filed at least seven insider trading cases as administrative proceeds. Previously, the agency typically brought insider trading cases as civil...
  • Blog Post: SEC Files Offering Fraud Action

    The Commission filed another offering fraud action tied to the sale of interests in the development of oil and gas wells prior to the recent downturn in the price of oil. Beginning in 2010 the defendants raised about $4.4 million from 60 investors through a nationwide offering. The defendants largely...
  • Blog Post: SEC Files Offering Fraud and Ponzi Scheme Cases

    A staple of SEC enforcement in recent years has been offering fraud and Ponzi scheme cases. This week the Commission filed two more of these actions, one an offering fraud targeting military personnel and a second and investment fund fraud case which virtually told investors it was a Ponzi scheme. SEC...
  • Blog Post: SEC Files Two Offering Fraud Actions Tied to a Horse Farm

    The Commission filed two settled offering fraud actions centered in part around an entity engaged in the purchase and sale of thoroughbred horses called Raintree Racing. A second involved an offering of interests in a real estate investment firm known as Atlanta Rehab which had invested in Raintree Racing...
  • Blog Post: SEC Files Offering Fraud Action Against Radio Show Hosts

    The SEC filed another offering fraud action, a staple of enforcement. This action centers on two recidivist radio talk show hosts selling interest in life settlements based on enhancements of their investment credentials, omissions of their regulatory history and a series of misrepresentations. SEC v...
  • Blog Post: SEC Files Offering Fraud Charges Based in Part on EB-5 Program

    The EB-5 program , which promises a path to a permanent green card for those who can invest in this country and create jobs, has been involved in a number of SEC enforcement actions, most recently involving unregistered broker charges. In a case filed this week, however, it was one facet of an affinity...
  • Blog Post: SEC Files Another Offering Fraud Case

    Offering fraud has long been a staple of SEC enforcement. SEC v. Baldwin, Civil Action No. 2:15-cv-00458 (D. UT. Filed June 25, 2015) is one such action, centered on the acquisition of two defaulted loans, collateralized by real estate. In one instance the loan was acquired and sold before the investors...
  • Blog Post: Implications of the SEC’s Charges Against Unregistered Broker Based on EB-5 Program

    [UPDATE: This article was updated to correct the names of the respondents in the described case.] The Securities and Exchange Commission (“SEC”) has further demonstrated its intent to take a more active role in ensuring that participants in the EB-5 program are in compliance with securities...
  • Blog Post: SEC Settles Unregistered Broker Charges Tied to Offering Fraud

    The SEC entered into partial settlements with three persons charged with acting as brokers without registering. The charges were tied to an offering fraud which centered on selling interests in a firm that claimed to be engaged in the business of buying and selling fractional interests in oil and gas...
  • Blog Post: SEC Files Offering Fraud, Microcap Fraud Actions

    Microcap fraud and offering fraud cases are staples of SEC enforcement. The agency added to its totals in these areas, filing an additional offering fraud and microcap fraud action. SEC v. Mogler, Civil Action No. 15-cv-01814 (D. Ariz. Sept. 11, 2015); SEC v. Babini, Civil Action No. q:15-cv-13348 (D...