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