Securities

Recent Posts

SEC Files Two Investment Fraud Actions
Posted on 7 Aug 2014 by Doug Esten

The SEC brought two investment fraud actions. One centered on defendant Thomas J. Lawler, known as the Reverend Tom, and the sale of administrative remedies or ARs which eliminated the purchaser’s debt while yielding significant profits. SEC v.... Read More

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

After Two Days of Trial, Florida Man Agrees to Plead Guilty to $10 Million Ponzi Scheme
Posted on 14 Mar 2013 by Jordan D. Maglich

In an unlikely turn of events, a Florida man decided to change his plea from 'not guilty' to 'guilty' on the third day of his trial, effectively ending the trial. George Elia, 69, made his decision after hearing a morning of testimony... Read More

SEC Charges Medical Device Company and its Founder with Fraud
Posted on 27 Jun 2013 by Thomas O. Gorman

The Commission charged a medical device company and its founder with making false statements regarding the FDA’s refusal to approval a device which is a key component of its business plan. The action was brought against Imaging3, Inc. and its founder... Read More

Investment Professional Charged with Fraud, Self-Dealing by SEC
Posted on 14 May 2015 by Thomas O. Gorman

The SEC charged another investment professional with fraud and self-dealing. SEC v. Ahmed, Civil Action No. 3:15-cv-00675 (D. Conn. Filed May 5, 2015). Defendant Iftikar Ahmed is an investment professional who was a partner at Oak Investment Partners... Read More

Another Investment Fund Fraud Case
Posted on 10 Mar 2011 by Thomas O. Gorman

The SEC continues to focus on investment fund fraud cases, filing its second action this week that contains Ponzi scheme allegations. SEC v. Beckman , Case No. 11 CV 574 (D. Minn. March 7, 2011). The SEC's most recent investment fund fraud action... Read More

An Investment Fund Fraud Based on A Claimed Treatment for HIV/AIDS
Posted on 5 Mar 2013 by Thomas O. Gorman

For almost six years Michael Harris solicited investments in M.F. Harris Research, Inc. Eighty investors put up thousands of dollars for what they understood was a possible treatment for HIV/AIDS. The investment was a fraud. Yesterday a jury convicted... Read More

SEC Wins Summary Judgment Ruling in Ponzi Scheme Case
Posted on 13 Oct 2014 by Thomas O. Gorman

The Commission prevailed in an investment fund scheme action, obtaining a favorable summary judgment ruling. In reaching its conclusion the Court rejected claims that the action was time barred and that the cause of action was outside the scope of Exchange... Read More

Former Exorcist/Attorney/Bishop Sentenced to 11-Year Term for Role in $6 Million Ponzi Scheme
Posted on 21 Mar 2013 by Jordan D. Maglich

A former New York attorney who also claimed to be a trained exorcist and bishop was sentenced to 11 years for his role in a Ponzi scheme that duped investors out of over $6 million. James Lagona received the sentence from United States District Judge... Read More

Another Partially Settled Investment Fund Fraud Case
Posted on 17 Aug 2010 by Thomas O. Gorman

The Securities & Exchange Commission resolved another investment fund fraud action with two individual defendants. SEC v. Amante Corp. , Civil Action No. 09-CIV-61716 (S.D. Fla. Filed Oct. 29, 2009) ( discussed here ). The action is all too familiar... Read More

Measuring the Success Of SEC Enforcement
Posted on 20 Sep 2010 by Thomas O. Gorman

For over a year an a half, there has been on-going effort to rejuvenate SEC enforcement. Enforcement has new personnel, new organization and new initiatives. During this process the SEC's market crisis investigations have yielded some significant... Read More

Two Criminal Investment Fund Fraud Actions
Posted on 10 Feb 2015 by Thomas O. Gorman

Despite massive publicity and numerous cases by enforcement authorities, investment fund fraud actions continue to be a staple of the SEC, CFTC and the DOJ. In case after case investors are convinced to part with their hard earned cash, trusting those... Read More

This Week In Securities Litigation (Week ending October 19, 2012)
Posted on 27 Oct 2012 by Thomas O. Gorman

Significant events this week included the proposal by the SEC of additional swaps rules regarding security-based swap dealers and major participants. Enforcement settled a "suspicious trading" insider trading action with a Hong Kong based entity... Read More

An Usual Investment Fund Fraud Complaint
Posted on 6 Oct 2010 by Thomas O. Gorman

The Commission filed an unusual investment fund fraud action in SEC v. Chiaese , Civil Action No. 10-cv-5110 (D.N.J. Filed Oct. 5, 2010). In what is now the new staple of SEC enforcement, the typical case alleges that the individual defendants and... Read More

Star Investment Manager, Advisers Charged With Fraud by SEC
Posted on 31 Mar 2015 by Thomas O. Gorman

The SEC issued an Order which charged investment manager Lynn Tilton, known as the Diva of Distressed Debt according to news reports, and her entities with fraud. Specifically, the Order Instituting Proceedings issued by the SEC, claims that Ms. Tilton... Read More