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...
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...
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...
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...
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...
There is little new about another investment fund fraud
or Ponzi scheme case except of course the victims. For whatever reason, these
cases were rare prior to the time Bernard Madoff was arrested. Since the King
of Ponzi schemes was trotted off to...
The Supreme Court handed down two significant rulings as the
week came to a close. In one, it rejected constitutional challenges to the
honest services fraud statute which is frequently used in white collar
prosecutions. In a second, the High Court...
Investment fund frauds continue to be a staple of SEC enforcement. This week the Commission filed another of these actions. The defendants are a former representative of a registered investment adviser and a licensed realtor. SEC v. Dearman, Civil Action...
The Commission prevailed on a motion for summary judgment
against a brokerage firm, its principle and a former managing director,
ultimately securing judgments of over $2.7 million. SEC v. Constantin, Civil
Action No. 11-CV-4642 (S.D.N.Y. Filed July...
A partner in an investment management company was convicted following a jury trial on multiple counts of mail and wire fraud as well as securities fraud. The charges stem from a scheme in which most of the $5 million in investor funds raised were siphoned...
The Commission initiated an action centered on the misuse of offering proceeds tied to farm loans. The defendants include an investment adviser, a financial planner and an attorney. SEC v. Veros Partners, Inc., Civil Action No. 14-cv-659 (S.D. Ind. Filed...
The Galleon insider trading trial continues this week in
New York. In another New York court room the Commission struggled to have a
partial settlement approved by the court. While the agency secured the
necessary approval it was not without a cost...
NEW YORK — (Mealey’s) In a New York federal court, UBS Financial Services Inc. agreed on August 8 to pay $120 million to settle federal securities law claims that it misrepresented the investment quality of certain Lehman Brothers securities...
A management company, its principal, a brokerage firm and
its founder were charged with fraud in an administrative proceeding initiated
by the Commission. In the Matter of John Thomas Capital Management Group
LLC, Adm. Proc. File No. 3-15255 (March...
The market crisis, the FCPA and insider trading were
again the key focus this week. On Capitol Hill the Senate Permanent Committee
on Investigations issued a lengthy, detailed report regarding the causes of the
market crisis. This report builds on...