Recent Posts

Former Youth Pastor Gets 51 Months in $3.4 Million Jewelry Ponzi Scheme
Posted on 10 Jun 2013 by Jordan D. Maglich

A former youth pastor was sentenced to serve 51 months in federal prison for masterminding a Ponzi scheme purporting to buy and sell precious jewels. Matthew James Addy, 34, received the sentence from United States District Judge James C. Cacheris... Read More

Virginia: Bellwether Venue for Financial and Securities Fraud Enforcement
Posted on 13 Sep 2010 by Brian Whisler

by Brian Whisler, Baker & McKenzie On June 15, 2010, Lee Bentley Farkas, the former CEO and Chairman of Florida based Taylor, Bean and Whitaker (TBW), was handcuffed and arrested outside of his health and fitness club, and was sent to the U.S. District... Read More

SEC, USAO Charge Former Broker with Securities Fraud Tied to Market Crisis
Posted on 30 Jan 2013 by Thomas O. Gorman

The SEC and the U.S. Attorney for the District of Connecticut filed, respectively, civil and criminal fraud charges against a former account executive at Jefferies & Co. arising out of the financial crisis. The charges center on the sale of mortgage... Read More

Investment Manager Pleads Guilty After Bilking Institutions, Others Out of Billions
Posted on 29 Apr 2014 by Thomas O. Gorman

The investment manager and principal of WG Trading Company, LP and WG Trading Investors, Stephen Walsh, pleaded guilty to two counts of securities fraud. In entering the plea Mr. Walsh agreed to forfeit $50,743,779 which represents the amount he misappropriated... Read More

How Falsifying Compliance With a Lease Became Securities Fraud
Posted on 4 Dec 2014 by Thomas O. Gorman

The CEO and CFO of a successful senior living firm sought to expand the business by acquiring the operations of another firm and leasing its facilities. Despite warnings that the lease terms were far to onerous, the deal was concluded. The result was... Read More

This Week In Securities Litigation (Week ending April 11, 2014)
Posted on 11 Apr 2014 by Thomas O. Gorman

Former hedge fund giant SAC Capital was sentenced this week. This concluded one of the most prominent insider trading cases. Under the terms of the sentence SAC Capital will no longer accept public funds. The DOJ and the SEC filed settled FCPA actions... 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

First There Was Siri, Now There Is Marl
Posted on 23 Apr 2012 by Thomas O. Gorman

Apple iPhone users have Siri to do their bidding. They only need ask and Siri will do from determining the current temperature to locating a restaurant that is close at hand. Siri does not however play the stock market - at least not in the current... Read More

U.S. Supreme Court: Discovery Rule Doesn’t Apply To SEC
Posted on 27 Feb 2013 by Timothy Raub

WASHINGTON, D.C. - (Mealey's) The U.S. Supreme Court on Feb. 27 reversed a Second Circuit U.S. Court of Appeals ruling allowing the Securities and Exchange Commission to seek securities fraud penalties for conduct that had ceased more than five years... Read More

City of Harrisburg Settles With SEC on Rule 10b-5 Violations
Posted on 16 May 2013 by Foley & Lardner LLP

Recently, the SEC settled with the City of Harrisburg (City) over violations of Rule 10b-5 in connection with material misstatements and omissions made by the City in its public statements and financial information, during a multi-year period. This... Read More

Commission Files Offering Fraud Case
Posted on 12 Mar 2012 by Thomas O. Gorman

The SEC filed a fraud action against Edward Ellis, Sr. and Jennifer Seidel, alleging that the two defrauded investors in connection with the purchase of shares in their company, Sederon, Inc. SEC v. Ellis, Civil Action No. 12-cv-1203 (E.D. Pa. Filed... Read More

SEC Charges Three For Six Microcap Fraud Manipulations
Posted on 23 Jul 2015 by Thomas O. Gorman

Microcap fraud has been a priority of SEC Enforcement since at least the formation of the Microcap Task Force about two years ago. The Commission has brought a series of cases focused largely on pump-and-dump schemes. Now the Commission has brought... Read More

Janus: Narrowing the Reach of Section 10(b)
Posted on 15 Jun 2011 by Thomas O. Gorman

The Supreme Court drew the line between primary and secondary liability, resolving a debate which has swirled since its 1994 decision in Central Bank v. First Interstate, 511 U.S. 164 [ an enhanced version of this opinion is available to ... Read More

A Step Toward Credibility – SEC Wins in the Wyly Case
Posted on 13 May 2014 by Thomas O. Gorman

The SEC won a significant courtroom verdict Monday when a jury in New York returned a verdict in favor of the agency in the complex, high profile trading action brought almost four years ago against Samuel Wyly and the estate of his late brother Charles... Read More

High Stakes for the SEC, Goldman and Investors
Posted on 19 Apr 2010 by Thomas O. Gorman

The Commission's action against Goldman Sachs is the most significant case it has brought in years. SEC v. Goldman Sachs & Co. , Case No. 3229 (S.D.N.Y. Filed Apr. 16, 2010). The case pits the once revered securities markets regulator struggling... Read More